Oct 24, 2018 17:43 UTC
Oct 25, 2018 at 14:57 UTC
No Crypto Taxes Until 2030: Proposes New Ukrainian Bill
A new bill has been introduced in the Ukrainian parliament which might be something that a lot of crypto enthusiasts could see themselves get behind. This new bill proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029.
This bill was recently proposed in the Ukrainian Verkhovna Rada (parliament) by Yuzhanina N.P. Tax and Customs Policy Committee, who were the initiators of the bill. It recommends a tax break for entrepreneurs and companies in the cryptocurrency industry without any conditions attached.
This bill, if passed, has the potential to alter the country’s tax codes and leigitimize blockchain as a mechanism “for reaching a consensus on the status of a distributed database at a specified time”. The bill also has provisions in place for exempting tax for other activities like cryptography, mining, and digital assets.
The bill, which if made into a law, will exempt entrepreneurs and registered legal commercial entities from paying taxes on any cryptocurrency trade activities or dealings that they indulge in until December 31, 2029.
The bill’s author, Yuriy Bogdanovich, believes that a law like this could really bosst the market and encourage new innovation. He said, this provision could
“stimulate the development of the market of virtual assets in Ukraine temporarily.”
The draft also clearly outlines that cryptocurrency ‘equipment’, or any high-end mining hardware, will also be spared from being taxed while being imported or sold. The draft was published back in September 27, 2018, and is yet to be approved by the Verkhovna Rada.
Back in September, deputy-finance minister Sergey Verlanov had asked the citizens to pay the standard income tax rate which was 19.5 percent on all income from crypto sources. They were awaiting the launch of new laws. It is thus important to note that Ukraine has not formally defined any cryptocurrency taxation laws yet.
Another Bill 9083-1 presents an alternative which suggests that cryptocurrency taxation should be brought down to a minimal 5 percent until December 31, 2023.
This comes at a time when crypto taxation legislation is being revised and taken into consideration in many countries.