The Ukrainian parliament has recently received a draft bill which proposes a tax break to cryptocurrencies businesses for at least a decade. If the bill drafted has been approved by the Ukrainian parliament, tax breaks on income earned from the cryptocurrency transaction will be granted for the citizen in the country including businesses involved in import and sale of cryptocurrency mining activity.
A bill which mandates the cryptocurrency owners to disclose their digital assets for taxation purposes has been approved. The decision to demand the digital assets declarations is an effort to get the “identification of the holders and the balances contributed by these virtual currencies” and to formalize the emerging industry in the country starting this year.
The parliament of Ukraine is to introduce a bill exempting cryptocurrency assets from taxation in the country. If approved, the Tax Code of Ukraine will be amended with the new concept and terms defining cryptocurrencies, and tokens. Cryptos are categorized as an intangible digital asset. This indicates a friendly approach towards the emerging industry.
The U.S. lawmakers have approached the Internal Revenue Service (IRS) in order to seek clarity on tax laws covering cryptocurrencies. An open letter was addressed to the IRS commissioner and other officials. The lawmakers stated, “We are concerned that the IRS is seeking to enforce guidance that does not adequately advice taxpayers of their obligations when using virtual currencies.”
In the absence of dedicated regulation, income generated through the cryptocurrency activities such as mining and trading attract 19.5% tax in Ukraine as revealed by an official from the Finance Ministry in Kiev. Investors are free to classify their digital assets as property or financial assets. The deputy finance minister expressed classification of crypto as intangible property under Civil Code.
The Colombian President, Ivan Duque vouched to cut taxes for crypto and blockchain startups. The President was obsessed with the technology including robotics and artificial intelligence. He revealed that Colombia would have a council focusing on the digital society. Moving to the crypto industry, the taxes for nearly five years would be cut for startups provided they generate jobs.
A bill has been drafted by the Polish lawmakers to classify the procedures in filing tax information involved in cryptocurrency related transactions. The bill also highlighted on how the cryptocurrency mining sector will be taxed. The amendments to the country’s tax laws will be discussed within the third quarter of 2018 by the Council of Ministers.
The South African Revenue Service is to enhance their method to identify cryptocurrency traders who evade their taxes. The Commissioner of the authority explained, “The key thing is identifying people who are trading because it’s easy to say cryptocurrency gains must be deductible, but there are also those who lose. That’s why it’s important to identify the trader.”
Ernst & Young LLP (EY) has acquired Cryptocurrency-Asset Accounting and Tax (CAAT) to expand its blockchain-related services offered and to emerge as the leader of crypto accounting and tax service provider. Vice-chair of EY, Kate Barton explained, “CAAT positions us as a leader in serving a variety of companies adopting crypto-assets in an evolving regulatory environment.”
The South Korean government has announced to amend the existing tax rules to benefit the blockchain start-up. The regulators have proposed to reduce the threshold for companies to claim tax reduction benefits. The tax rates are to be reduced for the “new-growth technologies” in 11 areas, as reported by CoinDesk Korea.