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Title: Ukraine Reveals Crypto Taxation Plan: Proposes 18% Tax On Earnings
Ukraine has announced a crypto taxation plan, which proposes imposing an 18% tax on earnings from cryptocurrency transactions. The Ukrainian government’s decision comes as part of its efforts to regulate the digital asset market and ensure transparency in financial dealings.
According to the National Securities and Stock Market Commission (NSSMC), Ukraine will not tax virtual assets held for personal use or gifted tokens, but all other transactions involving cryptos will be taxed at a rate of 18%. This includes profits made from buying and selling cryptocurrencies as well as any gains derived from staking, mining, hard forks, and airdrops.
The taxation plan also highlights that gifts of digital assets, such as donations, wallet transfers, and token distributions received without compensation, are exempt from tax. Additionally, the Ukrainian government has decided to exempt crypto-to-crypto exchanges, stating that these transactions do not generate taxable income.
This move is significant, as it marks Ukraine’s attempt to formalize its stance on cryptocurrency taxation and align with global best practices. The decision takes into account international experience in regulating digital assets, including those from Germany, Switzerland, Estonia, Singapore, and other jurisdictions.
Ukraine’s President Volodymyr Zelenskyy signed the “On Virtual Assets” law in March 2022, setting a legal framework for governing the digital asset market. However, the implementation of this law has been delayed due to ongoing debates regarding taxation, with experts predicting that it will not be introduced until late 2025 and virtual assets likely being legalized by 2026.
The Ukrainian government’s move could have significant implications for investors and traders in the region, as it clarifies the tax status of digital assets.
Source: https://bitcoinist.com/ukraine-reveals-crypto-taxation-plan-proposes-18-tax-on-earnings/
