No Crypto Taxes Until 2030: Proposes New Ukrainian Bill - page 3.

hatshepsut93

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Quote from: cetald on November 06, 2018, 03:47:22 PM

Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

The bill still remains a draft and there is no guarantee that it will be adopted. In addition, knowing the ukrainian realities, any law can change at any time, if the government is comfortable.

Recently the ministry of economic development has made an announcement that they plan to work on crypto legalization, but it had nothing about making crypto tax free. However, the elections will come soon, and we don't know who will win and what will be their stance on crypto. So, in general it's better to take all the news, not only about Ukraine but about other countries too, with a grain of salt until some laws actually pass.

1Referee

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If that happens to become reality, it's great for the local crypto economy, but there is no way that foreign players will even remotely consider to settle themselves in an unstable country. On top of that, being settled in countries such as Ukraine will definitely scare off large scale investors. In other words, there is more to lose than to gain here.

I'm sure that businesses will rather prefer to pay tax elsewhere than to be extorted eventually by Ukrainian government officials. There you have the law of the state, and the law of the elite.

Malta seems to be the main hotspot for the top layer of the crypto world, and nothing will be able to change that, at least not any time soon.

cetald

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

The bill still remains a draft and there is no guarantee that it will be adopted. In addition, knowing the ukrainian realities, any law can change at any time, if the government is comfortable.

Leyss

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

While in Ukraine, the cryptocurrency is not regulated. In its legislative body there are several quite good bills on its regulation, including those that provide for the absence of any taxation, a five percent tax and on the withdrawal of tax collection until the end of 2029. Which of them will be adopted is still unknown. In the meantime, before the adoption of relevant laws by the Verkhovna Rada of Ukraine, the government by its resolution wants to temporarily impose a tax on income in cryptocurrency in the amount of 19.5 percent. This is already decent.

mazdafunsun

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

I do not think that you are asking th right questions, the taxation enforcement is not that hard , it would be extremly close to traditional finance taxation.
i understand why one could see logic in this approach, and long term economic sense but the problem is that with this they are allowing also fiat funds being washed trough cryptos and thus the country would lose more than it would gain in long term Therefore this is not a good idea.

kryptqnick

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

The deputee that registered this project law is actually even a candidate for presidency in Ukraine. His words make total sense, because if we want Ukraine to benefit from cryptocurrencies, it has to give crypto community space to grow and develop rather than burden it already with taxes. Unfortunately, it's not the first and probably not the last project law related to cryptos in this country. As for fair way around it, if cryptos are recognized as money rather than assets, they shouldn't be taxed at all. Hryvnia and dollars are not taxed, are they? Wink

Vishnu.Reang

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LOL.. knowing how corrupt the Ukrainian politicians are, I seriously doubt that they proposed this measure so that their bribe payments are not affected (rather than due to some new found love for Bitcoin and other crypto-currency).

BitHodler

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Quote from: Kakmakr on November 06, 2018, 03:05:51 AM

The zero tax incentive in the Ukrainian will certainly draw a lot of attention to Bitcoin in that country, but I do not know how long this will last, if it becomes more popular than their local reserve currency. Roll Eyes

I'm not sure if that will happen, but my point of interest is how long can they maintain their position as tax friendly country to operate in. I'm sure that more countries will end up competing for the same businesses.

Another advantage of Ukraine following up on their previous statements, is that it may very well be Russia's testbed. If Ukraine does well and there is next to no negative impact, they will follow for sure.

It may even result in a situation where Russia will outcompete Ukraine with dirty tricks, which they aren't shy of to fall back on. It's a step forward for crypto overall, hope it will reach other countries as well.

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

If this is true then good for the Ukrainian people but even though there is taxation it will still be good just like here in my country where cryptocurrency exchnages are regulated by the central bank. I think taxation works within local exchanges everytime we convert our cryptocurrency funds into fiat maybe they had to get it from there. I know that cryptocurrency will be the next big thing in the next generation of Ukraine and other parts of the world that has the same proposal or even step to adopt crypto.

nur rochid

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Quote from: buyinbtc on November 06, 2018, 08:42:52 AM

Quote from: davis196 on November 06, 2018, 02:52:50 AM

Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

What do you mean by "fair way around it"?Do you want to legally avoid paying taxes?
There hundreds of ways to avoid paying taxes,both fiat or crypto,but I don't think that any of them is "fair".
Tax accountants are more competent about this topic.Maybe you should ask one.
Ukraine isn's very important for the crypto world,so I couldn't care less about the Ukrainian government.

Well there are tons of ways to avoid paying taxes on capital gains which in this case is making money on crypto. One of them is just opening an office in a foreign country where there are no or low tax rates, registering a company and paying yourself a wage. It's as easy as that.

And Ukraine IS important in crypto world to the same extent as every other country. Because good news are always beneficial for bitcoin. Let's hope that no crypto taxation will spread at least in the eastern europe countries.

one example in the country of Malta, where government allows cryptocurrency, and imposes a low tax, it is not surprising that many cryptocurrency companies there, of course, the country seems to be a paradise for the crypto world

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

It seems like Ukraine is the place to be if someone wants to avoid paying taxes for their crypto assets Roll Eyes

Anyway though, there are certain ways in which crypto taxes might come to realization: purchasing goods and collaborating with exchanges. In time, crypto taxes will have some sort of value-added tax on top of what they already paid for. It will be easier to do that and will 'merge' existing taxes with the same nature in fiat. As for the second one, the government can ask for user data and balances on the said exchange and use that to tax whatever amount that user has available. With the way KYC is processed in exchanges, I'm pretty sure the government already knows those kind of data and are just creating a suitable framework to tax us on our assets.

buyinbtc

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Quote from: davis196 on November 06, 2018, 02:52:50 AM

Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

What do you mean by "fair way around it"?Do you want to legally avoid paying taxes?
There hundreds of ways to avoid paying taxes,both fiat or crypto,but I don't think that any of them is "fair".
Tax accountants are more competent about this topic.Maybe you should ask one.
Ukraine isn's very important for the crypto world,so I couldn't care less about the Ukrainian government.

Well there are tons of ways to avoid paying taxes on capital gains which in this case is making money on crypto. One of them is just opening an office in a foreign country where there are no or low tax rates, registering a company and paying yourself a wage. It's as easy as that.

And Ukraine IS important in crypto world to the same extent as every other country. Because good news are always beneficial for bitcoin. Let's hope that no crypto taxation will spread at least in the eastern europe countries.

olubams

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

If this law is anything to go by which you would have done justice to by inclsuing the link for a more detailed perusal, it a good development because its not something out of place. Just like a company investing in a new line of business, government is a way to encourage such business give them some form of tax holiday but when it comes to government, what seems free might actually not be free which brings about thoroughly understanding the details of the bill, when its signed to law and the implementation of the law itself.

zhanyiguai261315

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Tax exemption for the cryptocurrency industry will stimulate the development of the Ukrainian market and open the door for new investment.
Ukraine hopes to drive the development of its economy through the blockchain boom!

jseverson

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

It depends on the country. The US, for one, taxes trading profits and capital gains. Others don't have specific guidelines and simply tax income earned from them like any other source. Getting around them also depend on what the rules are in the first place -- there are usually ways to minimize them legally.

But yeah, cutting taxes for a while seems fair. Crypto exploded so quickly that even small holders could owe massive amounts of money in taxes. Policies like this could soften the blow while they get used to dealing with crypto. If nothing else, it encourages people to pay proper taxes.

avikz

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

Even though MP Yuriy Derevyanko had proposed the bill for freezing taxation on cryptos, I doubt it will ever become a reality!! When a government does something good for their people (by legalizing cryptos in the country), they will want something back from the population (by earning on tax). SO freezing tax till 2029 isn't an option!! 5% tax bracket is already a very low percentage of tax and well within the acceptable limit. However, the previous bill also proposed to increase the tax percentage to 18% starting from 2024. The government may consider lowering this percentage for the future!

The tax percentage is calculated on the revenue from what I understand from the article! However, I don't encourage anyone to find a way around such legislation because if we want to see sustainable future growth for cryptos, favorable regulatory framework is what we can bank on!

exstasie

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

That's not what I'm seeing:
Ukrainian Legislator Urges Parliament to Cut Crypto Taxes Until 2030

Quote

The first draft offers a five percent tax for individuals and legal entities operating with virtual currency assets, such as coins and tokens. Starting January 1, 2024, the tax for business revenues from crypto will rise up to 18 percent. This, the document states, might help Ukraine draw an additional 1.27 billion hryvnia ($43 million) to the budget annually from 2019-2024.

I'm not sure how this applies to trading profits. 5% sounds pretty good for mining and other businesses. But it's not the same as a "halt on cryptocurrency taxation of any nature" and by 2024, the tax rate will more than triple.

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

The standard practice in most countries seem to be that VAT is charged, when you use Bitcoin as a currency or payment option and Capital Gains are charged on profits made with trading it as a commodity.

The zero tax incentive in the Ukrainian will certainly draw a lot of attention to Bitcoin in that country, but I do not know how long this will last, if it becomes more popular than their local reserve currency. Roll Eyes

Did they say why they are doing this?

davis196

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Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

What do you mean by "fair way around it"?Do you want to legally avoid paying taxes?
There hundreds of ways to avoid paying taxes,both fiat or crypto,but I don't think that any of them is "fair".
Tax accountants are more competent about this topic.Maybe you should ask one.
Ukraine isn's very important for the crypto world,so I couldn't care less about the Ukrainian government.

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Quote from: Ranly123 on November 05, 2018, 05:55:00 PM

Quote from: Drysprinkles291 on November 05, 2018, 05:33:45 PM

The bill that has been introduced in the Ukrainian parliament which proposes a halt on cryptocurrency taxation of any nature in Ukraine until the end of 2029, would definitely be something all crypto people would get behind. The questions is, how does cryptocurrency taxing work? And is there a fair way around it?

Taxation on our earnings in crypto is way better than closing the flow of crypto in a country. Taxation on cryptocurrency will have a big help to the economy in a nation because it will boost the income and the infrastructure build-up. I don't think that taxes in crypto should be stopped.

This just isn't true in the least, Crypto taxes are going to be a pretty small part of ANY countries tax inflows (revenues) so I wouldn't be saying that just because there's Crypto taxes the government is going to be able to do certain things. (And even anyway, governments mismanage money all the fucking time)

Capital Gains on taxes and crypto work the same way, don't know why people get so butthurt about them.

Topic: No Crypto Taxes Until 2030: Proposes New Ukrainian Bill - page 3. (Read 852 times)