Recent reports have revealed that Ukraine legislators “remain in debate” cryptographic tax rates in the midst of government pressure to legalize digital assets this year. An expert suggested that the upcoming bill could take more time than expected because the Parliament considers a lower taxes.
The legalization of the cryptography of Ukraine could take until next year
In an interview on Thursday with the local media, Taras Kozak, member of the Ukraine Regulator Consultative Consultation Group, shared new details on Ukraine’s efforts to legalize cryptocurrencies this year, the potential calendar and tax rates on the income of digital assets.
The expert disagreed with Danylo Hetmantessev, head of the Verkhovna Rada committee on finances, taxes and customs policies, which provided that the bill would be adopted in the coming months.
On February 7, the legislator said that the government worked to ensure that cryptographic law had been adopted by the summer of 2025. Hetmantessev added that the first project would be “ready for first quarter in the first quarter” of the year, followed by a second reading in Parliament. However, he noted that legislators are still working on details related to cryptographic tax measures.
As Bitcoinist reported, Hetmantesev announced in December that the Parliament’s working group worked alongside the National Bank and the International Monetary Fund (IMF) on a bill which will be presented at the beginning of 2025, aimed at legalizing digital assets in the first half.
Kozak did not agree with the legislator’s calendar, declaring that the legalization of cryptography in Ukraine could take until next year. According to the report, the expert is optimistic that the long -awaited bill will pass all the readings of the Verkhovna Rada and will be signed by the end of this year.
As part of this calendar, the crypto would be legalized and the income of digital assets could be taxed from 2026.
Legislators debate cryptography tax
The expert said that the final tax rate is essential, as Ukrainian investors and companies using crypto “are not against the reconstruction of the state budget”. According to Kozak, Ukrainians are ready to pay around 5% tax on their cryptographic income, but taxation can no longer be delayed.
The Ukrainian President Volodymyr Zelensky signed the law “on virtual assets” in March 2022, fixing the legal framework to regulate the country’s digital asset market. However, the law has not been implemented because it awaits changes to the Ukrainian tax code.
This led to the loss of millions of potential tax revenue, because the absence of regulations meant that exchanges had no legal obligation to pay taxes to the Ukrainian authorities for income obtained from cryptographic assets.
Kozak suggested implementing a small tax, “from 5% to 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, “he said.
The report says the government is considering a standard rate of 18% on personal income plus a 5% military tax. In addition, investors who cannot prove their initial investments could face a 23% tax on their total assets.
Hetmantesev previously explained that tax exemptions will not be applied to digital assets because they adopt a “very cautious approach to use cryptocurrencies for tax exemptions” after consulting the IMF and European experts.
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