March 28, 2024

Ukraine introduced the rules for declaring cryptocurrencies

The National Anti-Corruption Bureau of Ukraine (NABK) introduced rules for declaring cryptocurrencies inquality of “intangible assets”.

According to the NACP guidelines, when declaring income, Ukrainian citizens are required to report cryptocurrencies owned by them or their family members in the “Intangible Assets” section.

The document must indicate the name of digitalassets, the date of their last purchase, the total value and number of cryptocurrencies owned by the declarant on the last day of reporting. The price of cryptocurrencies should be indicated in Ukrainian hryvnias at the exchange rate of the National Bank of Ukraine. The income declaration must be submitted before April 30, and this applies to self-employed citizens who are not registered as individual entrepreneurs.

NACP borrowed the definition of cryptocurrencies fromInternational Anti-Money Laundering Development Group (FATF). FATF refers to cryptocurrencies as virtual currencies with the possibility of storing, investing, trading and transmitting in digital format, while such assets do not have the status of a legalized means of payment in any jurisdiction.

As stated by the Ministry of Finance of Ukraine in 2018year, due to the lack of special regulation, Ukrainians will pay income tax in the amount of 19.5% on profits received as a result of cryptocurrency trading or mining. Later, a bill was submitted to the Ukrainian parliament to introduce tax benefits for entrepreneurs and companies working with cryptocurrencies.

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