Ukraine plans to impose an 18% income tax on virtual assets
ChainCatcher news, according to Cryptonews, Ukraine has made significant progress in regulating cryptocurrency taxation, with the National Securities and Stock Market Commission (NSSMC) releasing a comprehensive framework for the taxation of virtual assets. The proposal not only presents standard tax models but also includes preferential tax models, indicating that Ukraine is actively aligning its financial system with international digital asset standards. The chairman of the commission, Ruslan Magomedov, announced this proposal on Telegram on Tuesday, suggesting an 18% personal income tax on virtual asset gains, along with an additional 5% military tax, which serves as a special wartime tax primarily used to support national defense. Furthermore, the proposal sets preferential tax rates of 5% and 9% for specific categories, drawing on international experience and adjusting it to fit the Ukrainian legal framework.According to the proposed rules, taxable income can be defined as total income or net income after deducting expenses, typically recognized when payments are received or assets are exchanged for legal tender, non-virtual goods, and services. Transactions solely involving virtual assets do not trigger tax obligations under this framework. Additionally, the document provides tax guidance for activities such as mining, staking, airdrops, and hard forks, clarifying that activities like free token distribution, token creation, and virtual asset storage are exempt from value-added tax, while modifications of tokens or rewards for goods and services paid with cryptocurrency may be subject to taxation. Some transactions may qualify for tax exemption under Article 135 of the EU VAT Directive, particularly services related to payments; however, the commission also noted that such classifications may require further clarification and legal definition.
