Ukrainian Top Lawmaker Wants to Exempt Crypto Income and Profits from Taxation
The Ukrainian Parliament’s Committee on Tax and Customs Policy Chairperson, Nina Yuzhanina, has filed a bill suggesting tax exemptions on virtual currencies
Ukraine has been consistently moving towards legalizing Bitcoin in the country. The country has also endeavored to establish itself as a transparent nation by auctioning seized items through Blockchain by allowing digitized ledger of transactions for those who interested to see.
On Oct. 30, Ukrainian Parliament’s Committee on Tax and Customs Policy Chairperson Nina Yuzhanina has submitted a bill amending Ukraine’s tax codes covering the cryptocurrencies and their derivatives.
Cryptocurrency transactions likely to be exempted from taxes
Under the bill, all digital currency income and profits will be exempted from taxation, including those from buying, selling, transacting and mining operations.
Based on the note attached to the bill, the tax exemption on virtual currencies is aimed at creating an effective mechanism to stimulate the market of digital currencies in the country.
“In order to create an effective mechanism for stimulating the market of cryptocurrency in Ukraine, the logical step is the exemption from taxation of profits of enterprises…Income from cryptocurrency operations should not be included in the calculation of the total monthly (annually) taxable income, and transactions with cryptocurrency and mining crypto goods are classified as transactions that are not subject to taxation.”
The tax exemption bill referred to as Bill No. 7246 is the third proposed legislation filed in the Ukrainian parliament aimed at regulating the use of digital currencies in the country.
The first bill aimed at establishing virtual currencies like Bitcoin as legal properties that can be exchanged for goods and services was filed in early October. In mid-October, the second bill titled “On the stimulation of the market of cryptocurrencies and their derivatives in Ukraine” was filed.
The bill is intended to consider legalizing digital currencies as financial assets.
Actions by the Ukrainian government on cryptocurrencies
Meanwhile, the government of Ukraine has taken steps to regulate the use of virtual currencies in the country. On Oct. 26, the High Council of Experts of the National Bank of Ukraine (NBU) conducted a meeting to tackle digital currency regulations.
In its press release after the meeting, the NBU said that the council has approved the proposals to determine the legal status of cryptocurrencies.
“During the event, the recommendations of the High Council of Experts on the urgent need for determining the legal status of cryptocurrency in Ukraine were approved.”
Such interest in exempting cryptocurrency transactions from income taxes does not come off as a surprise considering the fact that some Ukrainian legislators have in fact admitted to being major Bitcoin holders.