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On November 17, the Ministry of Digital Development of Ukraine registered an alternative bill on the taxation of cryptocurrency transactions.

According to the department’s proposal, the tax for individuals in the first three years after the law comes into force should be 5%, the next 5 years – 9%, after 8 years – 18%.

Legal entities are exempt from VAT with the exception of transactions with tokenized assets.

Residents of Diya.City can choose between an 18% income tax or a 9% tax on withdrawn capital.

Additionally, the Ministry of Digital Development proposes to create an innovation zone in which you can work for three years without prior registration.

In addition, the bill defines the legal status of virtual assets and adapts them to FATF and MiCA standards.

According to Minister of Digital Transformation Mikhail Fedorov, the rates proposed by his department will create favorable conditions for the development of the crypto industry and increase budget revenues.

Previously, Ukraine Economic Outlook analysts estimated that due to the lack of regulation of the cryptocurrency market, Ukraine lost more than $4 billion in tax revenue from 2016 to 2022. Another $48.8 billion in losses came from direct income of the population and companies.

Let us remind you that on November 7, the Verkhovna Rada of Ukraine received a bill developed by the National Securities and Stock Market Commission, regulating the taxation of cryptocurrency transactions in the country. It offers a rate of 18%.

Along with it, an updated version of the law “On Virtual Assets” with the implemented norms of the European MiCA regulation, as well as accompanying projects on changes to various regulations, were sent to the leadership of the parliament for consideration.