The Verkhovna Rada of Ukraine will not consider a proposal to introduce preferential taxation on personal income from digital asset transactions. This was stated by Danylo Hetmantsev, head of the parliamentary committee on finance, tax, and customs policy, in an interview with Interfax-Ukraine.
“Frankly, we do not want to stimulate crypto activities, which are inherently speculative and do not create added value or jobs,” he explained.
According to him, the National Securities and Stock Market Commission of Ukraine (NSSMC) failed to develop a quality bill on virtual assets, so the committee is discussing an alternative document from Oleksandr Sova, a deputy from the “Servant of the People” party.
Hetmantsev noted that two key issues remain unresolved: taxation and the market regulator.
“I am a consistent supporter of taxing virtual assets in full analogy with profits from securities. This is also the position of the IMF and, I think, we will not deviate from it. We tax at the general rate, but on investment profit,” he stated.
The politician pointed out that currently, tax is levied on the entire amount of sold cryptocurrency under the general taxation principle.
“Regarding the authority, […] essentially closer to this is the NSSMC, but its institutional capacity remains frankly low. […] On the other hand, the Ministry of Digital Transformation, proposed as the regulator, is more effective but by its nature less suited to regulating the cryptocurrency market,” Hetmantsev explained.
He added that Ukraine is not rushing to adopt a bill on virtual assets and is convinced of the need to adopt successful examples from other countries.
On November 7, 2023, the NSSMC submitted a draft law on the taxation of cryptocurrency transactions to the Verkhovna Rada of Ukraine. It proposes a rate of 18%, which has been criticized by the public.
On November 17, the Ministry of Digital Transformation registered an alternative bill. The agency proposed setting a tax for individuals at 5% for the first three years after the law comes into force, 9% for the next five years, and 18% after eight years.
At the end of November, MP Oleksiy Zhmerenetsky announced that within six months, Ukraine would have new versions of the law “On Virtual Assets” and a document on the taxation of cryptocurrency transactions.