A Ukrainian parliamentarian has proposed a bill that will see Cryptocurrency businesses in the country enjoy a tax holiday. According to Yuri Derevyanko, the legislator behind this bill, exempting Crypto firms from taxation for a period of ten years will attract more companies in the related technology and create more job opportunities. The country’s parliament, the Verkhovna Rada is also dealing with another bill on the virtual currencies sponsored by Alexei Mushak.
Crypto Businesses To Enjoy Tax Exemption In A New Bill
Yuri Derevyanko, a Ukrainian parliamentarian has proposed a bill that if passed will see Crypto businesses qualify for tax exemption for ten years. The member of the Movement of New Forces party is optimistic the bill will go through given that it has already passed important house committees. Bill 9083-1 has advanced European integration, customs regulations, financial policies, and budgetary matters committees.
If the Verkhovna Rada passes this bill, the country will be forced to amend the tax code. Crypto businesses including exchanges, miners, and investors will not be taxed for their income if this bill is passed. The bill will see the importation and sale of Crypto mining equipment become exempted from VAT until Dec. 31, 2029.
The Bill To Improve Ukrainian Crypto Market
Ukraine lacks a clear legal framework on Cryptocurrency hindering the growth of the market. Recently, the country’s deputy finance minister requested Crypto businesses and those involved in the sector to pay a 19.5 percent income tax due to lack of clear laws on the same. This has reduced the profitability of the sector and may see some companies choose to relocate to other countries and deter those wishing to enter the country.
Mr. Derevyanko is optimistic that if parliament approves this bill, the Ukrainian Crypto market will grow leading to an increase in investments. The subsequent growth of the market will eventually make it an important part of the economy. He believes that Cryptocurrency will fuel the new economy and there is a need for Ukraine to create a conducive environment for the same.
Many Crypto Proposals Before Parliament
Mr. Derevyanko is not the only Ukrainian parliament who is proposing a law to regulate the Crypto sector in the country. Alexei Mushak has proposed a bill that will force the country to amend the tax code to accommodate tax breaks for the entire Cryptocurrency sector. According to the “Solidarity” party member, Bill 9083 will require those involved in the Crypto industry to pay a tax rate of 5 percent on their profit until 2023. After the expiry of this period, the tax rate will increase to 18 percent.
Since last October, three Crypto-related bills have been filed in the country’s parliament but none has yet been approved. For some time, representatives of the Crypto sector and government officials have expressed the need to have a working legal framework for the sector. It is now evident that the parliament has to act fast if it is willing to address this legal gap.
The deadlock in Crypto regulation in Ukraine has not gone unnoticed, as most of the other industries have had trouble while dealing with the sector. Furthermore, the lack of a working legal framework has hindered the relationship between the Crypto sector and the stakeholders and the government. Currently, it is hard to tell whether the aspirations of pro-Cryptocurrency legislators like Derevyanko and Mushak will come true.