Ukraine mulls 5-10% tax on crypto income amid legalization push

The tax debate of Ukraine’s cryptography continues while officials consider a rate less than 5 to 10% while others put pressure for a standard income tax up to 23%.

Ukraine evolves towards the legalization of the cryptography market, those responsible considering a tax of 5 to 10% on cryptographic income to help finance the state budget and the military. In a interview With a local media, Taras Kozak, member of the Ukraine advisory group Securities Regulator, said that tax rates were still being debated, but reiterated that “all citizens’ income should be imposed”.

“I lean towards a small tax – between 5% and 10%. All citizen income should be imposed because our state is living on this money, our army fights, we buy weapons and we maintain security. »»

Cossack terrace

A bill to regulate the crypto is still in preparation. According to Danylo Hetmantsev, head of the Ukraine finance committee, the first reading could occur at the end of March, with a second shortly after. He awaits a complete legalization by the summer, but Kozak thinks that it could take until 2026.

The report notes that many in the Ukrainian cryptographic space promote a tax of 5% on income, but the government is considering standard rates – 18% of individual income tax plus a 5% military tax. Those who are unable to prove that their initial investments can face a 23% tax on total assets, notes the report. Hetmantsev would have rejected hopes for lower tax, because cryptographic benefits will be imposed as investments in shares, which means that the full capital gain is taxable.