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Crypto Tax Exemption on the Ukrainian Discussion Table

Kristina Frunze | Oct. 3, 2018
Crypto Tax Exemption on the Ukrainian Discussion Table

Crypto tax exemption might be granted for all Ukrainian cryptocurrency market participants, as proposed by MP Yuriy Derevyanko. The alternative bill suggests slightly different definitions for cryptocurrencies, tokens, Blockchain, and mining. 

3 October 2018 – One of the Ukrainian lawmakers has urged parliament to revise alternative bill on cryptocurrencies that suggests freezing taxes for cryptocurrency traders up to 2030. 

Crypto Tax Exemption for Ukrainians?

MP Yuriy Derevyanko is a member of the anti-corruption Movement of New Forces that has been founded back in 2017 by an ex-politician Mikheil Saakashvili. Derevyanko has proposed his version of the bill at the conciliation board of the Verkhovna Rada of Ukraine, which is the country’s parliament. He has stated:

"The bill provides tax exemptions for all the participants of the crypto market up to 31 December 2029." 

He also stated that it is important to make this decision for the Ukrainian economy:

"I believe we need to impose a moratorium on taxation of [the crypto] area for the next 10 years. We have to regulate and legalize this segment, which will become an engine for a new economy.”

The alternative bill suggests slightly different definitions for cryptocurrencies, tokens, Blockchain, and mining. As per the document, tax holidays will refer to all income from cryptocurrency deals both for entities and individuals.

Ukraine Crypto Taxation Bill

Derevyanko's proposition opposes the main bill, which has been put forward by a number of MPs of the President Petro Poroshenko’s party this September. The key difference between these bills lies in their approach to taxation of cryptocurrencies. 

The first draft of the cryptocurrency bill suggests a five percent tax for individuals and legal entities dealing with digital assets, including coins and tokens. Starting from January 1, 2024, the tax for business incomes from cryptocurrencies will increase up to 18 percent. 

This approach, according to the document, might help Ukraine attract additional budget from 2019-2024.

Earlier this September, AtoZ Markets reported that the Verkhovna Rada, reportedly proposed a bill that is related to the cryptocurrency taxation laws in the country. Once approved, the bill would tax operations with cryptocurrency assets. The draft law was published on the official website of the parliament.

In addition, the new Ukrainian bill intends to withdraw large volumes of operations from the grey market, in order to increase the state budget revenues. It plans to do so by adding a brand new type of profit to the legislation. The new bill also looks into the encouraging the development of cryptocurrency-related activities in Ukraine.

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Disclaimer: The views and opinions expressed in this article are solely those of the author and do not reflect the official policy or position of AtoZ Markets.com, nor should they be attributed to AtoZMarkets.