When it comes to cryptocurrencies, all the governments of all the countries in the world are stuck with planning and regulating them. Recently, the news popped up stating that the Ukrainian parliaments, Verkhovna Rada has come up with a new bill that when come in action will impose the tax on these digital currencies. This news came out on 14th September and flooded the internet.
What is this bill?
Well! This bill of imposing a tax on the crypto assets of an individual is found to be initiated by 23 officials of the Ukrainian government who made a suggestion of 5 percent tax on individuals as well as legal entities who are operating in cryptocurrency assets or any kind of digital currency assets.
According to the famous Trading Economics, it is being assumed that by the starting of 2024, 18 percent tax would be implemented on all kind of cryptocurrency related businesses. This percentage is the basic rate of corporate and personal income tax in Ukraine.
What is the purpose behind the introduction of this new bill?
According to what we have gathered so far, the purpose behind the introduction of this new bill is to withdraw the huge volumes of operations from the grey zone in the market while increasing the revenue of the state by adding a new form of a revenue. This is also being stated that this action will encourage the development of the crypto-industry in the country.
Coming to the numbers, according to the introduction of this new law on imposing the tax on the virtual currencies in the legal field, it can be said that the annual budget from 2019-24 will be raised to $43 million.
Till date, there is no regulation imposed on the cryptocurrency in Ukraine. Although back in September 2017, the government mentioned its interest in regulating the crypto-business in the country. It was in May 2018 that the Head of Ukraine’s Securities and Stock Market Commission stated that the commission is taking in consideration the idea of recognizing cryptocurrencies as a financial instrument. Following which, they also mentioned the need for legal recognition of these assets. This is the new update on the cryptocurrency industry straight from Ukraine. Let’s see what happens next, will this bill be passed and will the tax be imposed on all the virtual currency assets?