2024 was rough for Ukraine due to Russian- Ukrainian political tension. However, the country is slowly getting back on its feet and is looking to revamp its crypto landscape with all-new regulations.
Given newer developments, Ukraine’s SEC has proposed a 23% tax on crypto-based individual income. The overall break-up is 18% income tax and 5% military levy. This can change the very ecosystem of crypto.
23% Taxation On Crypto
The Ukrainian SEC just released a 32-page document highlighting the points of the new decision. In the document, the SEC acknowledges that building a taxation system comes with its own set of challenges. Hence, it clearly states that the document is all set to tackle “one of the most complex aspects.”
According to the SEC, the primary challenge the organization faced was the decentralized nature of the assets. The SEC claims that most crypto assets “are carried out through decentralized platforms or using self-hosted wallets, which makes automatic tracking by tax authorities impossible.”
The organization further added, “Unlike traditional income (salary, dividends), where the tax obligation is fulfilled by a tax agent (for example, an employer or a bank), in the case of virtual assets this function is most often performed by the individual.”
The decision has sent shockwaves across the industry as taxpayers claim it is difficult to keep tabs omn the expenses. As a result, imposing taxation without factoring in is a linear and one-dimensional decision made by the SEC.
However, the government has assured that this newer imposition is actually a move towards a better tomorrow. However, we infer that this is an attempt by the government to recover some money lost on the war.
Overall, Ukrainian traders are waiting with bated breath to see what the newly introduced regulations will bring to the table.
