Fedorov advocates tax incentives for crypto industry
Deputy Prime Minister for Innovation, Development of Education, Science and Technology – Minister of Digital Transformation Mykhailo Fedorov advocates the establishment of incentive taxes for the crypto industry; in his opinion, this will increase revenues to the country's budget and increase its investment attractiveness.
"Taxes should be at the level of 5% for the income of individuals and 18% for companies with the additional opportunity to take advantage of the tax regime of Diia.City," Fedorov wrote on his Facebook page on Wednesday.
He added that the establishment of incentive taxes for the crypto industry would contribute to the shadowing of a new segment of the economy.
The Deputy Prime Minister referred to the Ukraine Economic Outlook study, according to which, due to the lack of regulations in the period from 2016 to 2022, Ukraine potentially lost $48.8 billion in GDP and $4 billion in tax revenue in the cryptocurrency sector.
The study notes that the main problem of the crypto sector is its shadowing. At the same time, it is proposed to solve this problem through the creation of tax reform for the crypto sector, including the establishment of correct tax rates, which will create the preconditions for the legalization of cryptocurrencies and increasing tax revenues to the budget.
"Thus, de-shadowing of even 20-40% of the sector will lead to an increase in budget revenues," the study says.
In addition, on November 7, 2023, MP from the Servant of the People faction Oleksandr Sova submitted bill No. 10225 on amendments to the Tax Code of Ukraine on the taxation of transactions with virtual assets to the Verkhovna Rada for consideration. This bill also contains a new version of the law on virtual assets.
According to Interfax-Ukraine data, we are talking about a bill that was previously developed by the National Securities and Stock Market Commission, which declared that it took into account the standards of the European Directive Markets in Crypto assets (MISA).
With regard to taxation, it is proposed that it be carried out once a year, and the overall financial result from transactions with virtual assets is determined by the taxpayer.
