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Ukraine Parliament wants a significant tax on crypto profits

Sep 19, 2018

At the beginning of last month, news broke that the government of Ukraine wanted to place a tax on all cryptocurrency activity. Crypto mining activity and sales that come from selling digital currency would be assessed a 5% tax on top of the current 1.5% tax that all Ukrainians pay. Now, it would seem that lawmakers have a different scheme in mind, and could see even higher taxes paid by some in the country.

In a draft law published on the government’s website a few days ago, the 5% tax would still be assessed to legal entities and individuals for their crypto assets. However, the law, which was backed by 23 government officials, would introduce another 18% tax on crypto-related profits by businesses.

The tax law wouldn’t go into effect until January 1, 2024. The tax rate is the same rate for personal and corporate income tax in the country. The law was introduced to remove a significant number of operations from the current gray market in order to increase the revenues of the different Ukrainian states. Lawmakers expect the change to add at least $43 million to the country’s revenue.

According to the law’s supporting documentation, “The uncertainty of the legal status of virtual assets in terms of taxation, tax consequences, and transactions with them leads to the fact that natural and legal persons with virtual assets (cryptographic and other tokens) are effectively deprived of an effective way of protecting their ownership of such virtual assets…”

Source & full article: Coingeek

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