Ukraine’s Taxpayers Will Have to Report Crypto Holdings

A guidance released by Ukraine’s revenue agency requires taxpayers to report their crypto holdings.

Russian-language crypto news outlet Forklog reported that, according to the new bill, taxpayers in Ukraine have to report crypto assets as intangible property, similar to intellectual property or licenses for natural resources extraction.

The guidance states that cryptocurrencies, in line with the definition developed by the Financial Action Task Force (FATF), are a digital unit of value, which can be traded electronically and transferred, and used for payments and investing.

Reporting crypto holdings, taxpayers in Ukraine should name the assets they have (such as Bitcoin (BTC), Ether (ETH), XRP and others) and provide the acquisition date, the amount they own on the last day of the tax period, and the value of their crypto in Ukrainian national currency (the hryvnia) calculated on the basis of its price on the last day of the tax period.

Ukraine has made attempts to clarify its cryptocurrency regulations. In February, Ukrainian Ministry of Digital Transformation released news announcing that mining does not need regulatory oversight by staA guidance released by Ukraine’s revenue agency requires taxpayers to report their crypto holdings.te authorities, since it is regulated by the protocol itself and network users.

Earlier Ukraine’s financial regulator stated that crypto service providers will be required to track all crypto transactions above $1,200 and report potentially malicious activities to the authorities. And Ukrainian parliament also prepares a bill which proposes a 5% tax on crypto income in the first five years after it is passed.

Still, the country needs to develop a robust set of regulations for the crypto industry, and the new income reporting rules might be the first step with a real impact on Ukrainian taxpayers.

Even though until now reporting cryptocurrency holdings has not been obligatory, some Ukrainian politicians have already revealed some interesting numbers from their crypto wallets.

In 2016, member of parliament Dmitri Golubov reported 4,376 BTC and Odessa city council member Anatoly Urbansky declared 256 BTC. In 2019, governor of the Odessa region Maksim Kutsy disclosed 290 BTC and 11,071 ETH, according to Forklog.