Ukrainian NAPC Now Requires Tax Payers To Report Crypto Holdings As ‘Intangible Assets’
Taxpayers in Ukraine have been presented by the country’s revenue agency a guidance on how to report the cryptocurrency they’re holding.
The document was first revealed by the crypto news outlet Forklog. According to it, taxpayers need to report their digital assets under the intangible property denomination, just like licenses for extraction of natural resources or intellectual property are being reported.
Digital Assets to be Named
In the guidance, cryptocurrencies are being described according to the Financial Action Task Force’s (FATF) definition. They’re digital units of value that can be electronically transferred and traded, also used as means of investment and payment.
In order to report their cryptocurrency holdings, people should name their assets, like for example, Bitcoin (BTC), XRP, Ether (ETH) and so on. They should also mention their acquisition date, how much they owned in the tax period last day and the value of their holdings in hryvnia, the country’s currency, as per the exchange rate from the tax period last day.
Ukraine Trying to Clarify Crypto Rules
Recently, Ukraine has been conducting many efforts in trying to clarify its rules on cryptocurrency. Last month, the Ukrainian Ministry of Digital Transformation has made a surprising announcement that says it doesn’t plan to regulate crypto mining because the blockchain protocol rules already govern this activity.
The financial watchdog in the country came with the rule that crypto service providers have to monitor crypto transactions of over $1,200, also to report any suspicious activity to the authorities. There’s a bill passed by the parliament, proposing 5% taxes on crypto earnings in the first 5 years after the bill takes effect.
Politicians Revealed Their Crypto Holdings
However, Ukraine still needs to come up with more comprehensive rules for the crypto space. While declaring cryptocurrency holdings hasn’t been imposed as a rule yet, some politicians in the country have already revealed the impressive numbers they hold in their crypto wallets.
Back in 2016, Dmitri Golubov of the parliament reported that he has 4,376 BTC, whereas Anatoly Urbansky, a city council member of Odessa, declared he had no less than 256 BTC. Last year, Maksim Kutsy, the governor for the Odessa region, reported 290 BTC and 11,071 ETH.