Ukraine's National Securities and Stock Market Commission (NSSMC) has proposed a tax framework for crypto gains, which is currently under review in parliament. Lets check it.

The breakdown of the NSSMC proposal

     ० An 18% income tax and a 5% military levy (probably to cover ongoing war expenses) would be applied to crypto gains, totalling 23% tax.

     ० Certain categories would qualify for lower tax rates of 5% and 9% (not sure which categories are chosen, might be political favoured).

     ० Mining, staking, and airdrops would be subject to taxation; while Crypto-to-crypto trades would be exempt from taxation (this is mixed for crypto Industry).

Aligning with global digital asset norms?

     According to the reports, the NSSMC has drawn inspiration from international tax practices, referencing countries like Austria, France, Singapore, Malaysia, and Georgia, which have favorable tax regimes for crypto transactions. However I find that NSSMC did not discussed much with the crypto industry.

My Point

     After Trump's decision to stop free aid, Ukraine badly needs to accept blockchain economy. I think Ukrainian govt should start its own CEX, and make it tax free, it will earn in fees. Ukraine should get support from those countries who are wasting in war, or whichever agrees with.

Originally published on Wubits