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
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 theNewssection.
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.
