Ukraine plans 10 % to 23 % of the encryption tax to enhance budget and military assistance
Ukraine is moving forward with its plan to give legitimacy to encrypted currencies and taxes, with the aim of generating money for its budget and military. Ukrainian lawmakers work on the encryption tax bill, with the expectation of the final version by mid -2015. The proposed tax rates range from 5 % to 10 %, but for unconventional encryption pregnant women, the tax can reach 23 %.
Ukraine is approaching encryption taxes
As Ukraine continues to legalize encoded currency, officials formulate a draft law that would provide a tax from 5 % to 10 % on encryption transactions. The goal is to use these funds to support the state budget and enhance military operations amid the ongoing conflict with Russia.
According to Danilo Hettnasif, Chairman of the Virkhoufna Committee, Rada for Finance, Taxes and Customs Policy, the basic text of the draft law has already been completed. However, discussions are continuing on how to monitor authorities and regulate encryption transactions.
HetmanTsev also indicated that the draft law is expected to pass its first reading by March 2025, but full implementation may take longer.
Discussion about the tax structure
Meanwhile, Taras Kozak, Kiev City Council, The process secures It can extend to 2026. He indicated that the Ukrainians widely supported a 5 % encryption tax, which may be a fair average. However, the government is also studying a more traditional tax structure.
Under the current rules, individuals pay an income tax by 18 % in addition to a 5 % military tax, of up to 23 %. If it is applied to the encryption income, investors may face much higher tax burdens.
23 % tax on unconventional encryption possessions
One of the main provisions of the draft law is the tax rate of 23 % on the undocumented encryption assets. Investors who fail to provide evidence of initial investment sources may be required to pay this higher tax.
As Ukraine advances to codify encryption, the final decision on tax rates will play a decisive role in shaping the growth of digital assets in the country.
