Topic: [2018-09-07] Ukrainians Advised to Pay 19.5% Tax on Crypto Incomes - page 2. (Read 424 times)

If you don't like the way your taxes are spent, join a political party and try to change the system.
If you don't like paying taxes to the government, try to emigrate to a country where taxes are lower.
The Ukranians are lucky to pay tax at such low rates; not many countries have income tax at lower than 20%.

20% is pretty standard tax rate for things like capital gains. It's also the entry level income tax bracket for many countries.


The whole income tax is theft stance is a whole different argument, but I think taxes are beneficial for a functioning society. Maybe income shouldn't be taxed but instead just rely on heavy sales taxes, especially on luxury goods. That way people can chose whether they want to spend their money/pay taxes rather than be forced to.


What does it matter whether it's up or lower another percent? Paying taxes is expected in the vast majority of countries, and bitcoin or any other industry isn't exempt from taxes so paying them shouldn't be a deterrent to anyone other than those who are just using bitcoin to evade taxes.

Did they made this 19 and half to it doesn't seem too high?! Why not to make it 19 or 20%? The tax is pretty high by my opinion. Such politic surly will not help to crypto adoption and popularity in Ukraine.

The 19.5% Capital Gains tax is not that high, if they do not have to pay an additional VAT on the proceeds of their Crypto currency activities. We will just have to accept that governments will tax our Crypto currency income, but we should complain if we are taxed differently than other commodities or currencies.  

I should say, if you use bitcoin to pay for services and products, then VAT should come into play, but if you trade with Crypto currencies and you use it as a commodity, then Capital Gains should come into play.   

the citizens know that they will not pay it anyways
since nobody does, more than 35% of the ukrainian economy is in a shadow (different sources=different figures)
https://www.researchgate.net/publication/269626771_Shadow_economy_in_Ukraine_modelling_and_analysis   this one gives a 34% figure
which I personally,consider way too low
it is common to recieve only slightly higher than the minimal wage to keep the taxes low and get the rest as they say "in an envelope" i.e. in cash
do you really expect anyone in their right mind would go and pay 19.5% of their trading or any other ,including mining,income to state?

Cryptocurrency is a gray area, it is not just any income that should/can be subjected to tax anyhow. What happens in the case where a declared profit on cryptocurrency suddenly loses 70% of its value just before there is an intention to pay tax?

Actually only people who were indoctrinated by years of government propaganda can repeat slogans like "all income should be taxed". Saying no to the abuse is one of the fundamental rights of a human being and taxes of almost 20% on top of VAT, excise and property tax are an abuse.
If the government is abusing the miners they should leave and move the businesses somewhere else. A couple months ago there was a case of Polish government abusing traders and demanding 1% of every transaction on top of the income tax. As a result all exchanges moved out of the country. 

The rate in this country related to the incomes taxes it currently at 18% (the highest has been 20%) So what? Not much difference compared the incomes. Any income shall be taxed, there is nothing wrong. At least the citizens know where the government stands, but generally speaking, any citizen knows there will be a tax.

https://tradingeconomics.com/country-list/personal-income-tax-rate

In the absence of dedicated regulation, Ukrainians are expected to pay the regular 19.5% income tax rate on their profits from crypto-related activities like trading and mining, a high-ranking official from the Finance Ministry in Kiev explained. Crypto investors are free to report their digital funds as either property or financial assets.


The question, what do crypto investors owe the state, is a hot topic in many communities around the world. Authorities in most countries rush to tap into their incomes and profits, often before they’ve regulated the space and legalized digital assets, and sometimes even when they refuse or fail to recognize cryptocurrencies in any of their roles. Ukraine is no exception.

However, according to Ukraine’s deputy-finance minister Sergey Verlanov, the issue with cryptocurrencies is clearly exaggerated as far as taxation is concerned. Everything is much simpler than it seems at first glance, he claimed in an interview with Ekonomicheskaya Pravda.

“Two types of operations are possible with cryptocurrency – mining and trading. So, let’s say we bought bitcoin for 1,000 hryvnias; then we were lucky and it went up to 2,000 hryvnias; then we left bitcoin and credited the funds to a bank card. The change is 1,000 hryvnias. We impose income tax on it,” he elaborated, adding: “The rate is 19.5% – whether this is a lot or a little, is a rhetorical question.”

See more - https://news.bitcoin.com/ukrainians-advised-to-pay-19-5-tax-on-crypto-incomes/