Latest news with #NSSMC
Yahoo
09-04-2025
- Business
- Yahoo
Ukraine Considers Up to 23% Personal Income Tax on Crypto in Newly Proposed Tax Scheme
Ukraine's top financial regulator is floating the idea of taxing cryptocurrency as personal income, with possible carveouts for certain foreign asset-backed stablecoins, under a newly proposed taxation matrix published on Tuesday. In a translated letter introducing the potential new approach, Ruslan Magomedov, head of Ukraine's National Securities and Stock Market Commission, said that effective tax policy is a necessary step in preventing financial abuse and facilitating the 'legal and responsible use of digital assets.' 'Establishing fair and understandable taxation rules is also a prerequisite for attracting investment and integrating the Ukrainian virtual asset market into the global financial market,' Magomedov added. Under the NSSMC's suggested tax scheme, certain crypto transactions — essentially those in which non-stablecoin cryptocurrencies are cashed out for fiat currency or exchanged for goods or services, and during which there were no financial losses from the transaction — would be taxed at Ukraine's standard personal income tax rate of 18%, plus the additional 5% wartime levy that went into effect last December. Crypto-to-crypto transactions would not be subject to taxation under the proposed tax matrix, which is in line with how several other European countries including Austria and France, as well as crypto-friendly jurisdictions like Singapore, handle crypto taxation. Because Ukraine's tax code exempts any income generated from transactions with foreign exchange values from being taxed, the NSSMC suggested 'it makes sense to consider a preferential rate or exemption from taxation' for foreign asset-backed stablecoins and certain asset-referenced tokens (ARTs). The suggested preferential tax rate under the matrix could be either 5% or 9%. The matrix also offered a variety of taxation options for other types of crypto transactions, including mining, which the NSSMC suggested could be considered a 'business activity'; staking, which the regulator said could either be 'considered as business captive income' or taxed only at the cash-out stage; as well as hard-forks and airdrops, which the regulator said could either be taxed as ordinary income or only at the cash-out stage. Ukraine had previously introduced a draft law similarly amending the country's tax code to cover cryptocurrency in 2023. A 2024 analysis from Swiss blockchain analytics firm Global Ledger found that Ukraine could stand to collect over $200 million in annual taxes from crypto transactions. Ukrainian President Volodymyr Zelensky officially legalized the country's cryptocurrency sector in 2022, determining the industry's regulators and giving them the go-ahead to create specific regulations. The National Bank of Ukraine is currently working on a draft law based on the European Union's (EU) Markets in Crypto Assets (MiCA) regulation. Ukraine has been a candidate for EU membership since 2022. CoinDesk reached out to the NSSMC for a comment. Sign in to access your portfolio
Yahoo
05-03-2025
- Business
- Yahoo
Ukraine Reforms Tracker Weekly — Issue 16
Editor's note: This is issue 16 of Ukrainian lawmaker Yaroslav Zhelezniak's weekly "Ukraine Reforms Tracker" covering events from Feb. 24–March 2, 2025. The digest highlights steps taken in the Ukrainian parliament related to business, economics, and international financial programs. The Kyiv Independent is republishing with permission. Ukraine's Bureau of Economic Security leadership race narrows to 30 candidates The selection process for the next head of the Bureau of Economic Security (BES) has moved to the next stage, with the competition commission reviewing applications from 43 candidates. Following the initial document screening, 30 applicants have been approved to proceed, having met the formal eligibility requirements of the competition. The next phases will include skills assessments, legislative knowledge tests, and integrity checks. Ukraine passes overdue IMF-mandated judicial reform bill Ukraine's Parliament, the Verkhovna Rada, has approved draft law #12368-1, establishing a new judicial framework to replace the controversial Kyiv District Administrative Court (OASK). The bill, which received 234 votes in favor and was welcomed by the G7 Ambassadors, marks the fulfillment of a long-overdue International Monetary Fund structural benchmark, originally due by Dec. 31, 2024. However, the final version deviates from initial IMF recommendations, opting to create two separate courts: a Specialized District Administrative Court for key administrative cases; a Specialized Administrative Court of Appeal, which will handle appeals from the first-instance court. The High Qualification Commission of Judges (HQCJ) is required to announce a competition for judicial appointments within one month of the law's enactment, with international experts playing a role in the selection process for the next three years. Ukraine's stock market regulator adopts updated ethics code in line with IMF commitments Ukraine's National Securities and Stock Market Commission (NSSMC) has adopted an updated Employee Ethics Code, aligning with recent amendments to the Law on State Regulation of Capital Markets and Organized Commodity Markets. The decision was announced by NSSMC Chairman Ruslan Mahomedov via Telegram on Feb. 28. The revision is part of a structural benchmark under Ukraine's Memorandum of Economic and Financial Policies with the IMF, with a deadline set for January 2025. According to Mahomedov, the updated code was developed in consultation with experts from the World Bank and the IMF, ensuring it meets international best practices. Read also: EBRD lowers Ukraine's 2025 growth forecast amid inflation, war impact Ukrainian government adopts new public investment allocation mechanism On Feb. 28, 2025, the Cabinet of Ministers of Ukraine approved a new framework for allocating public investment, aimed at prioritizing state-funded projects based on their strategic importance. The unified project portfolio will rank investment initiatives according to their relevance to Ukraine's national goals and regional development needs. The government has also established an Interagency Commission to oversee the distribution of state budget funds for investment projects, chaired by the Minister of Finance. The commission will include representatives from key ministries, including the economy, regional development, health, energy, and digital transformation ministries. Ukraine moves forward with $1 billion purchase of Russian-made nuclear reactors Ukraine's Verkhovna Rada has cleared the way for state-owned Energoatom to proceed with its $1 billion acquisition of Russian-made nuclear reactors from Bulgaria, after all blocking resolutions against draft law #11392 were rejected. The deal involves the purchase of two Rosatom reactors originally intended for the Belene Nuclear Power Plant in Bulgaria, to be used for the construction of reactor units No.3 and No. 4 at the Khmelnytskyi nuclear power plant. While the legislation allowing the purchase has been approved, Energoatom still lacks the necessary parliamentary authorization for the actual construction of the new units. Ukrainian law enforcements raid leading pharmaceutical plants amid pricing probe National Police of Ukraine conducted raids on three of the country's largest pharmaceutical manufacturers on Feb. 28, 'Economichna Pravda' reported. According to the National Police statement, raids were a part of ongoing criminal investigations. The searches follow a recent decision by Ukraine's National Security and Defense Council (NSDC) to introduce drug price regulations, cutting the cost of essential medications by 30% from March 1, 2025. The NSDC had also recommended that law enforcement agencies intensify efforts to combat price manipulation and financial abuses in the pharmaceutical sector. Read also: Police raid Ukraine's 3 country's largest pharmaceutical plants, media reports We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
