Ukraine considers taxation of cryptocurrencies with a rate of 6.5% on profits

Ukrainian officials have received amendments to the Tax Code on the taxation of cryptocurrencies for consideration. Mikhail Chobanyan, the founder of the Ukrainian cryptocurrency exchange Kuna, announced this on his Telegram channel.

According to the amendments presented, the tax on cryptocurrency is proposed to be levied only in case of profit. This is reported in the amendment under paragraph 14.1.196-1 of Article 112:

«Profit from operations with virtual assets – income in the form of a positive difference between the income received by the taxpayer from operations with virtual assets and the cost of their acquisition.»

The tax rate for individuals is  6.5%  (income tax 5% + military duty 1.5%). For legal entities, the tax is even lower –  5% .

“My opinion is that this is cool! It is clear, simple and sane%. Profit. Not turnover, but profit! We are waiting for the adoption of the changes. This is cooler than any capital amnesty, ” Chobanyan wrote in his Telegram channel (the author’s spelling is preserved).

  • A project on taxation of cryptocurrencies was presented in Ukraine.
  • The rate for individuals will be 6.5% of the profit.
  • For legal entities, the rate will be even lower.

The proposed amendments to the Tax Code of Ukraine describe the taxation process on profits from trading in cryptocurrencies.

Amendments to taxation of cryptocurrencies appear after the Verkhovna Rada of Ukraine adopted the draft law «On virtual assets». Let us recall that according to the law, a cryptocurrency (virtual asset) is an “intangible good” that has a value in electronic form. Read the comments of experts and lawyers on the Law on Virtual Assets here.

At the same time, cryptocurrencies are divided into secured and unsecured. The National Bank will supervise the secured cryptocurrencies. He will also receive the authority to conduct both scheduled and unscheduled inspections of the cryptocurrency business.

Meanwhile, it became known that in Ukraine until the end of the year they can test payments to officials in digital hryvnia (e-hryvnia). It is planned that these payments will be distributed among the employees of the Ministry of Digital Transformation (Ministry of Digital Transformation) of Ukraine. Testing details remain unknown.

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