I want to mine cryptocurrency. Is it legal in Ukraine? How to properly register: FOP, LLC...? What taxes do I have to pay? When does the obligation to pay taxes arise: when I sold the foreign currency or when I exchanged it or in some other case? What tax reports need to be submitted and when? When for what and to what liability can I be held responsible?
Cryptocurrency
solvedAnswers
Lorina Fedan
Good evening. On September 8, 2021, the Verkhovna Rada legalized virtual assets, which allowed owners of virtual assets to legally exchange and declare them.
On March 15, 2022, the President of Ukraine signed the Law of Ukraine "On Virtual Assets" No. 2074-IX dated February 17, 2022, which should enter into force from the date of entry into force of the Law of Ukraine on Amendments to the Tax Code of Ukraine regarding the specifics of taxation of transactions with virtual assets. To date, the Law has not entered into force.
According to the explanation of the State Statistics Service of Ukraine, service providers in the crypto sector should choose between the following KVEDs:
-
KVED 64.19 – Issuance and trading of cryptocurrencies (according to NACE). This code should be chosen if you plan to operate as an issuer of cryptocurrencies.
-
KVED 66.19 – Cryptocurrency trading services must be classified within a class (according to NACE). At the same time, the selection of this KVED is provided for the activities of crypto exchanges and other service providers in the field of trade.
If the expected changes in the Tax Code of Ukraine take place, it will be advisable to open an LLC for the legal mining of cryptocurrencies with the updated KVED for miners (63.11). At the time of writing the answer to your question, there is no KVED, which would condition the implementation of business activities for the purpose of obtaining cryptocurrencies.
There are no separate KVEDs for operations with virtual assets. The Tax Code of Ukraine does not regulate operations with cryptoassets.
Virtual assets may be seized (Part 10 of Article 170 of the Criminal Procedure Code of Ukraine).
Civil servants are criminally liable for the illegal acquisition of assets in the form of cryptocurrency (Article 368-5 of the Criminal Code of Ukraine).
Cryptocurrency is subject to declaration (Clause 6, Part 1, Article 46 of the Law of Ukraine "On Prevention of Corruption").
The Tax Code of Ukraine does not contain special rules for the taxation of cryptocurrency, but income received from the sale of cryptocurrency is taxed according to general rules - 18% income tax and 1.5% military levy.
12.02.2024 18:28