Ukraine to Develop Frameworks for Crypto Taxation

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As per an announcement made on the Finance Ministry’s official website, Ukraine is forming a working group to discuss and create a legal framework for crypto taxation.

The group will begin its work starting Oct. 16 to identify crypto related tax regulation options within the current legal framework. The group of experts will further identify possible cases in which new or revised legislation is necessary.

The findings of the group will be shown to the Expert Council for the preparation of informal tax consultations by the end of 2018.

In September, the parliament of Ukraine, the Verkhovna Rada, introduced a bill on crypto taxation. The draft proposed a 5% tax for individuals and legal entities that possessed coins and tokens.

The bill further suggested increasing the tax for business from crypto to 18% starting 1st January 2024. According to the document, the new tax regime would bring an additional 1.2 billion hryvnia (approx. $43 million) to the budget annually from 2019-2024.

In the start of October, Ukrainian Parliamentarian Mr. Yuriy Derevyanko suggested another bill that would grant tax exemptions for all cryptocurrency traders till 2029, Mr. Yuriy Derevyanko stated, “We have to regulate and authorize this segment, which will become an engine for a new economy.”

As reported earlier, the National Bank of Ukraine (NBU) is thinking about a state cryptocurrency tied to the local fiat currency, the hryvnia. The NBU noted that the “e-hryvnia” would be centralized and remain under government control.