On November 15, 2019, the Parliament of Ukraine registered the Draft Law No. 2461 "On Amendments to the Tax Code of Ukraine and Some Other Laws of Ukraine regarding taxation of operations with cryptographic assets".
The goals of the above Draft Law are to create conditions for the launch of the crypto assets market and increase tax revenues to the state and local budgets from transactions with virtual assets. The project proposes to define the terms "virtual asset", " cryptocurrency", "operations with cryptocurrency", "distributed registry", "token" and "token asset" in the Ukrainian legislation for further use in taxation.
The explanatory note to the Draft Law indicates that this draft determines the subject of corporate income tax when conducting operations with cryptocurrency, calculated as a positive difference between the income received by the taxpayer from the sale of cryptocurrency and the costs associated with their acquisition and/or mining, and the financial result of operations with cryptocurrency is determined separately from the financial result for other activities of the taxpayer.
Also, the Draft Law is intended to regulate the fiscal burden on taxpayers and includes in the bases for personal income tax investment income from transactions with cryptocurrency, which is taxed at a rate of 5%. At the same time, transactions on sale of cryptocurrency are classified as such, which are not subject to value-added tax.
Deiak Law Firm closely monitors the development of legislative initiatives concerning to the regulation of global financial trends and ensures the appropriate improvement and adjustment of Tax practice.
