An Independent MP in Ukraine is to propose a new bill to parliament which, if passed, would entitle Ukrainian crypto holders and miners advantageous tax breaks over the next decade.
The bill suggests that holders of cryptocurrencies would receive a 10-year break from reporting their earning on tax returns and miners would be able to waive VAT charges on the sales of any mining equipment.
The Bill listed as 9083-1 is entitled ‘On Amending the Tax Code of Ukraine on the taxation of transactions with virtual assets in Ukraine’. It also aims to define cryptocurrency and mining for the purpose of future legislation. The MP clearly a strong supporter of emerging technologies, including blockchain, commenting in parliament:
“I believe that we should impose a 10-year moratorium on taxing this area. We should streamline and legalize this huge [industry] which will become a driving force of the new economy. These people represent the creative class… We have to provide for their development and stop them from emigrating.”
Ukraine has been particularly busy with its crypto legislation this year and this new bill is significant given that the government is currently looking to pass another bill that would tax both cryptocurrency operations and assets. That bill, if passed, would impose 5% tax on individuals and companies utilizing cryptocurrencies and tokens, with businesses that claim crypto-related profits paying 18% tax on the total amount.
On top of this proposed reclarification of the county’s current tax laws as they apply to digital currencies, the Ukraine National Securities and Stock Market Commission (NSMCS) has indicated that the Financial Stability Council (FSC) is considering further crypto regulation as “an important first step in building a consensus among government agencies and financial regulators”.
The head of the NSMCS Timur Khromaev believes that new regulatory framework is needed to ensure the crypto space in Ukraine can guarantee a high-level of interaction between all participating players and market transparency.
Currently, no licenses are required in Ukraine for conducting crypto mining activities and the government has displayed a largely positive approach to supporting emerging technologies such as blockchain and cryptocurrency.
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