Citizens of Ukraine are now expected to pay 19.5% income tax from crypto profits. The profits include from crypto related activities like trading and mining.
Sergey Verlanov, in an interview:
Two types of operations are possible with cryptocurrency – mining and trading. So, let’s say we bought bitcoin for 1,000 hryvnias; then we were lucky and it went up to 2,000 hryvnias; then we left bitcoin and credited the funds to a bank card. The change is 1,000 hryvnias. We impose income tax on it,” he elaborated, adding: “The rate is 19.5% – whether this is a lot or a little, is a rhetorical question
The finance minister also noted that cryptocurrency has no legal status in the country. “Under the Civil Code of Ukraine – this is an intangible property,” he said.
The country is trying to create a set of rules to legalize cryptocurrency in the country. Sergey Verlanov thinks that once that happens, crypto exchanges should act like tax agents. If the cryptocurrency is bought on an exchange, the law should oblige traders to declare their income and indicate its source.