Amendments to the Tax Code regulating the taxation of cryptocurrency transactions regulate them by analogy with investment profit without taking into account the specifics of digital assets. This was reported in a comment by Cryplogger CLO Crypto Neobank Trustee Plus Ludmila Kukuetu.
The turnover of primary documentation in the field of investment profit is well-established and, in general, does not raise any questions.
“But virtual assets (VA) are very specific, and, accordingly, their turnover, primary documentation has a lot of features. At the same time, the legislator puts them on a par, regulates their accounting in exactly the same way, ”the expert pointed out.
She warned that the conservative approach of the tax authorities and the specifics of IA in practice can lead to many problems related to tax reporting, accounting and other nuances in the field of taxation.
The document also does not spell out how its effect will apply to those who acquired VA before the entry into force of the law.
“In practice, individuals and legal entities own such assets for large amounts. Often in Ukraine, the approach was broadcast that this would be resolved, but at the moment we, unfortunately, do not see this, ”Kukuetu explained.
Speaking about the 18% tax on investment income from transactions with virtual assets, the lawyer suggested that “market representatives will not be delighted with this rate, and this may provoke an outflow of users and companies from Ukraine.”
Recall that at the beginning of June NSMSC Ukraine has submitted a bill regulating the taxation of cryptocurrency transactions in the country, and an updated text of the law “On virtual assets” with the implemented norms of the European regulation MiCA.
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Amendments to the Tax Code regulating the taxation of cryptocurrency transactions regulate them by analogy with investment profit without taking into account the specifics of digital assets. This was reported in a comment by Cryplogger CLO Crypto Neobank Trustee Plus Ludmila Kukuetu.
The turnover of primary documentation in the field of investment profit is well-established and, in general, does not raise any questions.
“But virtual assets (VA) are very specific, and, accordingly, their turnover, primary documentation has a lot of features. At the same time, the legislator puts them on a par, regulates their accounting in exactly the same way, ”the expert pointed out.
She warned that the conservative approach of the tax authorities and the specifics of IA in practice can lead to many problems related to tax reporting, accounting and other nuances in the field of taxation.
The document also does not spell out how its effect will apply to those who acquired VA before the entry into force of the law.
“In practice, individuals and legal entities own such assets for large amounts. Often in Ukraine, the approach was broadcast that this would be resolved, but at the moment we, unfortunately, do not see this, ”Kukuetu explained.
Speaking about the 18% tax on investment income from transactions with virtual assets, the lawyer suggested that “market representatives will not be delighted with this rate, and this may provoke an outflow of users and companies from Ukraine.”
Recall that at the beginning of June NSMSC Ukraine has submitted a bill regulating the taxation of cryptocurrency transactions in the country, and an updated text of the law “On virtual assets” with the implemented norms of the European regulation MiCA.
Found a mistake in the text? Select it and press CTRL+ENTER
Cryplogger Newsletters: Keep your finger on the pulse of the bitcoin industry!