Ukraine Readies Cryptocurrency Taxation
Let 'er Rip, Parler du Bitcoin en Ukraine!
MP Yaraslav Zheleznyak, Financial Committee's Deputy Chairman, dropped a juicy tidbit on his Telegram channel: a smokin' hot crypto legislation draft is in the works by the National Commission for Securities and Stock Market (NCSSM) and the National Bank, with a little help from the IMF. Expect it by December's end!
Now, the war ain't over yet, but Yaraslav has got some more tax changes up his sleeve for the post-war period. He's talking about a sexy reform in industrial emissions taxes and a review of taxes for the extractive industry.
Here's the lowdown on how different countries tax crypto—you never know when it might come in handy for a friendly pub quiz! In the USA and Australia, crypto owners gotta pay capital gains tax. But in Deutschland, it's a unique asset with its own taxes. In Portugal, they tax crypto earnings based on category like pensions (28%) or self-employment (14.5% to 53%).
While we didn't get all the enrichment insights in this article, here's a quickie rundown of the tax framework that's been proposed for Ukraine:
- Taxation: 18% personal income + 5% military levy (total 23%) for regular crypto transactions. Lower rates, like 5% and 9%, for specific situations (stablecoins and entrepreneurial activities).
- Taxable Events: Triggers only when converted to fiat or used for goods/services, not crypto-to-crypto deals. Income recognized upon receipt or exchange.
- Exemptions: Potential exclusion or reduced rates for stablecoins linked to foreign currencies. Unrealized gains and non-fiat transactions stay tax-free.
Stay tuned for more updates as the draft bill makes its way through the legislative process. The Ukrainian peeps want crystal clear regulations to encourage institutional adoption and make some green to shore up their economy during the ongoing conflict. But, don't forget, it's a delicate dance between responsibility and growth. Catch you on the flip side! 😎
- Yaraslav Zheleznyak, who is the Deputy Chairman of the Financial Committee in Ukraine, has also planned further tax changes following the crypto legislation draft, focusing on industrial emissions taxes and the taxation of the extractive industry.
- In the realm of crypto taxation, Portugal categorizes crypto earnings and applies different rates, such as 28% for pensions and 14.5% to 53% for self-employment.
- Amid discussions about a proposed tax framework for cryptocurrencies in Ukraine, it's expected that regular transactions would be taxed at 18% personal income plus a 5% military levy (total 23%), while specific situations such as stablecoins and entrepreneurial activities may be subject to lower rates.
- The proposed cryptocurrency tax framework in Ukraine also includes taxable events, which are triggered only when the crypto is converted to fiat or used for goods and services, and exemptions such as potential reduced rates or exclusion for stablecoins linked to foreign currencies, unrealized gains, and non-fiat transactions.
