According to a new draft law revealed by the country, thetax bill,thatwas initiated bytwenty threegovt. officers, suggests a5%tax onpeopleand legal entitiesoperativewith virtual currency assets,likedigital currencies and tokens.
As per a local news source ‘Trading Economics,’ startingJan. 1, 2024 crypto-related profits by businesses would be taxed at18%,thatis expected to be a basic rate forcompanyand the privatetaxationincountry.
The new bill aims to withdrawmassivevolumes of operations from thegreymarketthusas toincrease state budget revenues by adding anew kind ofrevenue,likewiseas toencouragethe eventof crypto-related activities in the country.Aninstructivenoteattached tothe bill explains:
“Accordingly, the introduction of transactions with virtual assetswithin thelegal fieldcan[make it possible] to drawone.27 billionUkranian monetary unit($43 million) to the budget annually from 2019-2024.”
To date, digital currenciesaren’tlegallyregulated in the country. InSept2017, the Ukrainian cabinet of Ministers on theFinancialStability Board,thatoperatesbeneaththe Verkhovna Rada, convenedto work outthepositionof virtual currencieslikeBitcoin ‘BTC’.
Earlier in May 2018, Head of Ukraine’s National Securities andstock MarketCommission (SSMCS)TimurKhromaevunconcealedthat the commissioncould bethinking aboutrecognizing cryptocurrencies as amoneyinstrument soon, stressingthe requirementfor the legal recognition of cryptocurrencies,thatwasafterwardsupported by the Financial Stability Council inJuly.
Even in June also, the State Service for Special Communicationand InformationProtection of the countryof Ukrania unconcealedthat the authorityisn’tgoing toregulate cryptocurrency mining, citing theunsurestatusof cryptocurrencies and unpredictable reactions by authorities.