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Ukraine Proposes 23% Tax on Cryptocurrency Transactions with Stablecoin Exemptions
Ukraine’s financial regulator has proposed a 23% tax on cryptocurrency transactions, excluding stablecoins. The National Securities and Stock Market Commission (NSSMC) suggests applying an 18% income tax and an additional 5% tax to all crypto-related activities.
The proposal aims to encourage growth while ensuring proper taxation in the country. A reduced rate of 5% or 9% for stablecoin transactions could make Ukraine an attractive location for certain types of crypto activities.
According to recent data, Ukraine is poised to collect over $200 million annually from taxes on crypto transactions. This represents a significant revenue source for the government.
It’s worth noting that these tax guidelines are part of the country’s efforts to develop its cryptocurrency regulatory framework. Earlier this year, Ukrainian President Volodymyr Zelenskyy signed a law establishing the legal foundation for a regulated crypto market in March 2022.
The National Bank of Ukraine is currently working on draft legislation based on the European Union’s Markets in Crypto Assets (MiCA) regulation, indicating the country’s desire to align with international standards while developing its own approach.
Daniil Getmantsev, head of the tax committee of Ukraine’s parliament, previously stated that a draft bill to legitimize cryptocurrencies was under review and expected to be finalized this year. The NSSMC created the proposed framework to help lawmakers make informed decisions by considering the advantages and disadvantages of each suggestion.
Magomedov emphasized that “these aspects can have a critical impact on the market and tax liability.”
Source: https://coincentral.com/ukraine-proposes-23-tax-on-cryptocurrency-transactions-with-stablecoin-exemptions/
