Re: [2018-09-07] Ukrainians Advised to Pay 19.5% Tax on Crypto Incomes
Cryptocurrency is a gray area, it is not just any income that should/can be subjected to tax anyhow. What happens in the case where a declared profit on cryptocurrency suddenly loses 70% of its value just before there is an intention to pay tax?
You have a couple options. If you realize profit, incurring taxes, you could segregate the amount due for taxes from your total capital and hold it in fiat currency. The alternative is to realize the losses on reinvestment (70% in the above case) to drastically lower the total tax liability.
In Ukraine pretty much everyone evade taxes, workers get small legal salary and then the rest of the salary in cash, freelancers don't declare their income because it's nearly impossible to comply with regulations, businesses (including the mega-rich) are always looking for schemes that make them avoid taxes. The tax bodies in Ukraine don't work the same as in the West, they don't chase citizens unless they are really rich, and in Ukraine any income is legal until proven otherwise. So, when people sell small amounts of coins on exchanges (up to ~$5,000), they just withdraw it to their bank account and most likely won't have to worry about taxes.
I have a friend in Ukraine and this is accurate. I mentioned this article to him and all he had to say was "meh."
