The Ukrainian government has agreed on draft decisions to support the Ukrainian economy in an effort to maintain the operation of businesses and employment in places where security permits that, President of Ukraine Volodymyr Zelensky said.
Article continues below
"First, we are starting tax reform: instead of VAT and the income tax, we are giving a rate of 2% of turnover and simplified accounting. For small businesses - it is the first and second groups of individual entrepreneurs - we are introducing voluntary payments of the unified tax. In other words, pay if you can, but if you cannot, there are no questions," Zelensky said in a message published in the early hours of Tuesday.
The second main point is maximum deregulation of business, he said.
"We are cancelling all checks for all businesses in order to allow everyone to work normally, in order to enable cities to return to life, in order to allow life to continue in all places where there is no fighting. There is only one condition - you must ensure the normal operation of your business within the framework of Ukrainian legislation," Zelensky said.
These are just the first two steps of Ukraine's tax reform, he said. "It will be continued," Zelensky said.
Ukraine legalized cryptocurrency on Thursday, March 17, as the country has been receiving millions of dollars in donations in cryptocurrency aimed at helping the country in the wake of the Russian invasion.
Ukrainian President Volodymyr Zelensky signed the bill called “On Virtual Assets,†legalizing cryptocurrency, on Thursday, one month after the Ukrainian parliament passed the law.
The bill effectively creates framework for the introduction of cryptocurrency such as Bitcoin and Ethereum into the country’s economy, something which was not accounted for before.
It will allow Ukrainian banks to work with cryptocurrency firms, with the bill further asserting that it will consider holdings of cryptocurrency of equal importance to holdings of the country’s original currency, called the Hryvnia.
Cryptocurrency firms must also register with the government to continue handling the digital currency. According to the bill, Ukraine’s National Securities and Stock Market Commission will serve as the country’s regulating body for the cryptocurrency market.
Although not previously regulated in the country, Cryptocurrency was incredibly widespread in Ukraine even before the war with Russia began. Holdings of cryptocurrency in Ukraine were actually some of the highest in the world. ■