On October 23, 2018, by the initiative of the Ministry of Finance of Ukraine, was gathered a working group to develop a «Generalized tax advice» on the taxation of cryprocurrency. Artem Sereda, partner of allTax legal and tax advisors, participated in the meeting of the working group of the Ministry of Finance of Ukraine with the aim to develop a «Generalized tax consultation on cryptocurrency».

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Comments of Artem Sereda:

“The best specialists of the public sector, entrepreneurs, representatives of law firms were attracted to participate in the working group, which indicates a great desire of the Ministry of Finance of Ukraine to settle the cryptocurrency market in Ukraine. Some members of the working group spoke about providing an official definition of the concept of “cryptocurrency” and fixing it in the regulatory' legal acts. After that, it would be appropriate to talk about taxation, since the current Tax Code of Ukraine "binds" everything to the taxation of goods or services. Also, some participants expressed recommendations on introducing preferential tax rates for cryptocurrency operations and mining activities, because today, without making additional changes to the tax code, miners will have to pay 18% personal income tax and 1.5% war’s tax. That could adversely affect the cryptocurrency market in Ukraine and force existing Bitcoin-farms to change jurisdiction to a more attractive one, for example, Belarus. The discussion continues.”

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Additional information on the activities of the working group of the Ministry of Finance of Ukraine on the development of a «Generalized tax advice» on cryptocurrency will be published on the website of the company allTax legal and tax advisors.

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