The Parliament of Ukraine proposes to impose a tax on income derived from transactions with cryptocurrencies

The Parliament of Ukraine proposes to impose a tax on income derived from transactions with cryptocurrencies

The Ukrainian Parliament wants to start to tax the income related to cryptocurrencies.

Lawmakers have proposed to introduce a 5 percent tax on any profit associated with cryptocurrencies. The tax would apply to both individuals and legal entities. In accordance with the bill, these revenues should be reported separately from other forms of income.

In addition, if the bill is passed, starting from January 1, 2024, the tax rate will rise to 18 percent.

The bill also proposed to define the concept of cryptocurrency in the Tax code of the country as a “virtual asset in the form of a token that functions as a medium of exchange or store of value” and defines virtual assets, as “a form of” recording in a distributed registry that can be used as a medium of exchange, unit of calculation, or as a store of value.

The bill also introduces a definition for mining

In the explanatory Appendix to the bill noted that Ukraine was one of the leaders of the mining industry, as previously, its territory was located a mining-pool GHash. As of 2014, it controlled 55 percent of the total power of the bitcoin network. But later, because of the uncertainty of regulation in Ukraine, mining companies left the country and moved to more friendly jurisdictions, such as Canada, Georgia and Finland.

Given the current state of Affairs, the Ukrainians are deprived of the opportunity of raising funds to implement their ideas using traditional instruments. So, last year the Ukrainian company has not received a single dollar through initial public offering (IPO). At the same time, according to the Ukrainian Association UVCA and Deloitte in 2017, 19 Ukrainian startups attracted about $ 160 million or more than 4 billion UAH through the ICO.

According to estimates of the Ukrainian authorities, the country’s citizens to own cryptocurrency for about $ 98,7 billion, so the tax on income related to cryptocurrency transactions will bring to the Treasury annually not less than 45 million USD.

News tags
Let's Disqus