Cryptocurrency Taxation Imminent in Ukraine
Hey there! Let's chat about some exciting news in the world of cryptocurrency. A member of parliament, Yaroslaw Zhelesnyak, dropped a tidbit in his Telegram channel that's worth sharing. He mentioned that the National Commission for Securities and Stock Market (NCSSM) and the National Bank of Ukraine are teaming up with the IMF to develop a draft law for cryptocurrency legalization. They aim to present this draft by the end of December.
Interestingly, this isn't just about cryptocurrencies. Other changes to the tax system for the post-war period are expected. These include a review of industrial emissions taxation and a reform of the taxation of extractive industries.
Now, when it comes to cryptocurrencies, different countries handle them differently. For instance, in the USA and Australia, cryptocurrency owners pay capital gains tax. In Germany, it's treated as a separate asset, with different tax rates applying. In Portugal, cryptocurrency income is taxed based on its category, such as passive investments or self-employment income.
As for Ukraine, recent developments suggest that individuals who own or trade cryptocurrencies in the country will be subject to an 18% personal income tax (PIT) on their crypto profits. Additionally, there's an extra 1.5% military levy on income from cryptocurrencies. This combined taxation approach is part of the updated draft law on virtual assets, overseen by the NCSSM, along with the National Bank of Ukraine and the Ministry of Digital Transformation.
On the regulatory side, cryptocurrency transactions and exchanges are considered taxable services, although some VAT exemptions might apply under certain circumstances, as clarified by recent rulings from the National Revenue Information Service.
All in all, Ukraine seems to be moving towards treating crypto earnings like other personal income, with a clear and structured regulatory regime aimed at giving a much-needed boost to the crypto sector. Keep an eye on this space for more updates!
The upcoming draft law for cryptocurrency legalization in Ukraine, led by the National Commission for Securities and Stock Market (NCSSM), National Bank of Ukraine, and IMF, may also impact the finance and business sectors, as it includes changes to the tax system. Specifically, individuals who own or trade cryptocurrencies in Ukraine may be subject to an 18% personal income tax (PIT) on their crypto profits, and there's an extra 1.5% military levy on income from cryptocurrencies, showing an increasing interest in regulating technology-based financial services, such as cryptocurrency transactions and exchanges.
