Ukraine to impose tax on cryptocurrencies

Members of Ukrainian Parliament plan to increase the state budget revenues at the expense of crypto-currencies, although the official status of digital money in Ukraine has not yet been settled. Recently, a bill on the taxation of crypto-currencies and various tokens has been submitted to the Verkhovna Rada of Ukraine.

This document, registered on September 14, was submitted by a group of 23 MPs. According to the authors of the draft law, the bill is aimed at bringing out of the shadow economy a large volume of operations with crypto-currencies and pumping up the state budget. In particular, the deputies propose to impose a 5% tax on the profits of individuals related to transactions with cryptocurrencies. The profit of company involved into operations with cryptocurrencies, is also proposed to be taxed at a rate of 5% until January 1, 2024. However, after this date, the rate should increase immediately to 18%.

Authors of the bill in the explanatory note to the document provided a rather bold forecast. According to their calculations, the bill will help to attract an additional UAH 1.27 billion annually to the state budget during 2019-2024.

It is worth noting that neither Ukrainian government nor the National Bank has yet defined legal status and regulation for crypto currencies.

“To date, alas, the issue of legal settlement of the crypto currency is still open. Many believe that crypto currency is illegal, and this is the most common myth. Cryptocurrencies are not officially prohibited at the moment in Ukraine. Thus, it is incorrect to say that cryprocurrencies are illegal, if you follow the rule: “everything that is not forbidden is allowed,” Pavel Moroz former Deputy Minister of Justice, lawyer, and the speaker of the Kyiv Blockchain Forum commented on the issue.

It is worth mentioning, that this is not the first attempt to provide tax regulation for cryptocurrencies in Ukraine.


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