The financial regulator of Ukraine proposed to impose certain cryptographic transactions as personal income at a rate of up to 23%, but excluding cryptographic and crypto transactions and stabaces.
Cryptographic transactions would be taxed at 18% with a military levy of 5% more within the framework of the proposed framework, released April 8 by Ukraine National Securities and Stock Market Commission.
President of NSSMC Ruslan Magomedov said In a declaration of April 8 according to which “the question of cryptographic taxes is not a hypothesis, but a reality that is fast approaching”.
He added that the agency had created the executive to help the legislators to take an “informed resolution” by considering the advantages and disadvantages of each suggestion because “these aspects can have a critical impact on the market and tax responsibility”.
As part of the proposed crypto framework of the NSSMC, a tax will be applied when the crypto is collected for the fiduciary currency or exchanged for goods or services.
Crypto-au crypto transactions would not be taxed, bringing Ukraine in accordance with other European countries, notably Austria and France, as well as cryptographic user jurisdictions like Singapore, said NSSMC.
The regulator claims that it is “logical” to exclude the stablecoins supported by foreign currencies or apply only a tax of 5% or 9%, because the Ukrainian tax code already excludes the income from transactions in “exchange values”.
An extract translated from the NSSMC report indicated that the stablecoins supported by foreign currencies could be exempt from taxation. Source: NSSMC
Exploitation, clears, hard and delicacies forks
Other activities related to crypto, such as mining, milestone and air parameters, are also discussed in the context which has launched some tax options.
The NSSMC said that crypto extraction is generally considered a commercial activity, but that there could be a general tax limit for certain cryptographic transactions, including mining.
In the context, stimulation could be considered as a “captive income of companies” or only imposed if the crypto is conceded for fiduciary currencies. While forks and hard parts could be imposed either as an ordinary income, or when the tokens are cashed.
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The regulator suggests that a tax franchise threshold could help “relieve the burden of small investors” and is common in other jurisdictions.
Exemptions for donations, transfers between family members and holders who keep their crypto for a defined time are also reported as possibilities. However, the NSSMC indicates that exemption may not apply to non -guardian crypto wallets.
Last December, Daniil Getmantessev, head of the tax committee of the Ukrainian Parliament, said that a bill to legalize cryptocurrencies was being studied and should be finalized at the start of this year.
The Ukrainian President Volodymyr Zelenskyy first signed a law establishing a legal framework for the country to operate a regulated cryptography market in March 2022.
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