Icon
Come back

1 min

20 Nov. 2023

10813

What is known about the legalization of cryptocurrencies in Ukraine and what will be the tax?

Finance
Popular
Ukraine
What is known about the legalization of cryptocurrencies in Ukraine and what will be the tax?

The Verkhovna Rada has registered draft law No. 10225-1 on the circulation of virtual assets in Ukraine. Find out what tax conditions will be in place for businesses operating in the field of virtual assets and what else will change for individuals and legal entities

More interesting and useful news in our Telegram-channel
More interesting and useful news in our Telegram-channel
FOLLOW


In 2022, the Verkhovna Rada of Ukraine passed the draft law No. 3637 "On Virtual Assets", which was supposed to come into force after the amendments to the Tax Code. However, Volodymyr Zelenskyy vetoed it and made a number of amendments. Throughout the year, parliamentarians tried to change tax legislation, but all attempts to do so during the war were in vain.


On November 7, 2023, a new draft law No. 10225 was finally registered in the Verkhovna Rada, but it was widely criticized, and as the head of the Ministry of Digital Transformation Mykhailo Fedorov noted, "to bring the crypto sector out of the shadows, we need to create a special tax regime for this business."


Thus, a new draft law No. 10225-1, which was developed with the support of the crypto business and the Ministry of Digital Transformation, has appeared on the website of the Verkhovna Rada.


"Together with MPs and business, we have developed draft law No. 10225-1 on the circulation of virtual assets in Ukraine. The law will help to create favorable conditions for the development of the crypto industry, increase budget revenues and improve the investment attractiveness of Ukraine," said Mikhail Fedorov.


What does the new draft law on cryptocurrency legalization provide for?


According to Mr. Fedorov, the amendments to the draft law take into account the interests of business and provide for simple and clear tax conditions for those working in the field of virtual assets. In particular, the draft law No. 10225-1:


– defines the legal status of virtual assets;

– classifies digital assets and services in accordance with the European standards for the regulation of cryptoassets (MiCA);

– provides for the creation of a special innovation zone where users will be able to work without prior authorization for three years;

– - takes into account and adapts the FATF recommendations on financial monitoring of the cryptoassets market.




Visit Ukraine on social media: Telegram | YouTube | Instagram | Facebook | Twitter | TikTok




Cryptocurrency taxes: what will change?


The registered draft law provides for the payment of 5% personal income tax (for the first 3 years), 9% (for the next 5 years) and 18% (to be applied as a general tax rate after 8 years).


At the same time:


● For legal entities, transactions with virtual assets are exempt from VAT (except for service tokens, which will be used to tokenize goods and services).

● For service providers, the income tax will be 18%. However, transactions of service providers related to virtual assets are exempt from VAT (except for those related to consulting services).

● With Diia.City, users will be able to choose between 18% income tax or 9% tax on withdrawn capital.


After registering the new draft law, Mykhailo Fedorov noted that he hopes to help develop new digital industries and have the new draft law supported by the Parliament, because "business support is the foundation of Ukraine's economic growth."


We remind you! Ukraine is among the top 3 countries in the world in terms of cryptocurrency use. Read more about what services allow you to pay with cryptocurrency and what you can buy with it in Ukraine in our previous article.


Photo: Adobe Stock


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.




We recommend purchasing it for a safe and comfortable trip to Ukraine: 


Visit Ukraine Insurance - safe travel in Ukraine (insurance covering military risks);

Visit Ukraine Tickets - book bus and train tickets to/from Ukraine;

Visit Ukraine Tours - the largest online database of tours to Ukraine for every taste;

Visit Ukraine Hotels - book hotels for a comfortable stay in Ukraine;

Visit Ukraine Merch - choose patriotic clothing and accessories with worldwide delivery.

Cooperation - cooperation and advertising integrations with Visit Ukraine and Visit World projects.




© 2018-2023, Visit Ukraine. Use, copying or reprinting of materials on this site is permitted only with a link (hyperlink for online publications) to Visit Ukraine.

All rights reserved.

Recommended articles

2 min

Events Will there be a Christmas tree and celebrations in Ukraine this year?

Will there be a Christmas tree and celebrations in Ukraine this year?

The world will soon be celebrating Christmas and the New Year, but for the second year in a row, Ukraine will be celebrating the holidays in a time of war. Find out more about the plans to set up the main Christmas tree in Kyiv this year and whether there will be New Year's celebrations

19 Nov. 2023

More details

2 min

Transport How to pay for parking in Kyiv: detailed instructions

How to pay for parking in Kyiv: detailed instructions

Paying for parking in Kyiv has become easier thanks to a number of convenient services that offer a quick and efficient solution to this issue. Find out more about how to use online payment and whether it is possible to do it directly at the parking lot

19 Nov. 2023

More details

3 min

Travel Where to celebrate the New Year in Ukraine during the war?

Where to celebrate the New Year in Ukraine during the war?

For the second year in a row, Ukraine will celebrate New Year's holidays in the midst of a full-scale war, and planning even a family evening in such circumstances is an asterisked task. Find out how and where you can celebrate the New Year to give yourself and your children at least one evening of New Year's miracle

17 Nov. 2023

More details

2 min

Transport Bond's 0007 and 7777: Ukraine records record demand for car VIP number plates

Bond's 0007 and 7777: Ukraine records record demand for car VIP number plates

The demand for VIP car number plates, in particular such exclusive combinations as the "Bond" 0007 and 7777, has hit record highs in the vehicle market. Find out more about the cost of an elite license plate in Ukraine

17 Nov. 2023

More details