Ukrainian Lawmakers Mull Two Crypto Tax Bills

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Two separate bills about cryptocurrency taxation have been submitted to the Ukrainian Parliament this week.

The first bill, filed by MP Alexander Urbazhinsky on behalf of the Committee on Financial Policy and Banking, intends to impose taxes on incomes out of crypto mining and trading. The proposed tax rate is 5%.

The second bill is proposed by the MP Edward Skripnik and it suggests that businesses that are using cryptocurrencies should be taxed in accordance with the general principle of taxation of enterprises, which is at 18%.

Both of the bills also propose a fixed tax regime for decentralized autonomous organizations (DAOs). DAOs will be considered legal persons in order to be subject to taxes.

Regardless of which bill is approved, or even if both of them are approved simultaneously, cryptocurrency taxation in Ukraine is likely to become a reality by the end of 2021. It is reported that the local government is eager to make better use of the tax revenues from cryptocurrency, and has committed to introducing essential measures to make that happen.