Paying 19.5% tax of bitcoin in Ukraine is not an option but it’s a burden. Even in the absence of dedicated regulation on cryptocurrency related activities by the government.
You see, once it comes to tax, Authorities in most countries rush to tap into their incomes and profits, often before they’ve regulated the space and legalized digital assets, and sometimes even when they refuse or fail to recognize cryptocurrencies in any of their roles. And in this case, Ukraine is no exception.
In an interview with Ekonomicheskaya Pravda, Ukraine’s deputy-finance minister Sergey Verlano said:
“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 deputy-finance minister Sergey Verlano further noted that while cryptocurrency has no legal status in the country, it is a common item, subject to turnover.
According to him, “Under the Civil Code of Ukraine – this is an intangible property.” To make his explanation clearer, the Finance Ministry official provided his “favorite comparison.” Trading bitcoins, Verlanov said, is like buying and selling tanks in World of Tanks, the popular online game.
However, the deputy-finance minister Sergey Verlano believes Ukraine needs to determine the legal status of cryptocurrencies. Well, we don’t know how serious the government is yet to be working on this. But we hope soon, something should be done.
But, what’s your opinion on the 19.5% tax of bitcoin incomes in Ukraine? Cool or not cool?