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July 26, 2023, 08:43:06 AM |
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Let's imagine that in a country such as Ukraine the salary package can offer you a choice: you can choose between being paid in UAH (Ukrainian Hryvna) or BTC (UAH equivalent). The first problem with BTC salary is the question: how the government should monitor this process. The second problem is the necessity of exchange BTC into Ukrainian Hryvna. The third problem is the possibility to buy something in BTC in Ukraine.
1. Problem. The Government For instance, I get 0,3 BTC as a payment for my work. I want to buy something with it, using exchange services. How does tax rules may apply to my situation? There are two scenarios: 1) Tax regulator may provide rule, that I obliged to pay taxes from BTC or any other crypto-earnings in a moment, when i try to exchange BTC in Ukrainian Hryvnas. So, the tax regulator must gain access to monitor my account, where I hold my earnings in BTC to confirm the tax rate of operating due to the rate of BTC itself on the market. For example, I sold 1 BTC for exchange rate 1 to 30 0000 (in USDT) and then I need to sell USDT for Ukrainian Hryvna (37 Ukrainian Hryvnas for 1 USDT). So, there are two operations, which will be taxed for approximately 20%. I do not see the possibility of giving monitor access to the tax regulator willingly by my side due to the nature of the crypto-currency. Also, I do not see the possibility for the government in our time to track all operations in crypto in Ukraine without gaining access to holders account without their willingly cooperation and willingly verification that they are truly the owners of crypto-account. So, we can make an assumption, that the possibility of that option is low enough.
2) Tax regulator may provide rule, which states, that all operations of income in BTC (or in any crypto) should be taxed immediately after the crypto has been received into the account. This helps regulators to track the rate between BTC, USDT and Ukrainian Hryvna, but also this may give a chance for companies to pay salary when the rate is low, so there is an open source of manipulation, which only can be reduced to zero by a law, that will oblige companies to pay salaries in a specific time (which opens a new window for market manipulation) I don't see this option as vital.
2. Problem. The Exchange Do I really have an option to spend a BTC as easy as Ukrainian Hryvnas in stores? Well, some fancy stores which sale technical staff such asL iPhone, MacBook, Dyson and Marshall sound design may include crypto as a payment, but mostly crypto payments won't be accepted on 98 % of Ukrainian stores. Answer is simple - there is no legal changes in tax law (Code of Taxes), but there is a law for cryptocurrency. It means that crypto is legal, but income of it is questionable, and banks will block any payments in that form of payment. So, I need to to change BTC in Ukrainian Hryvnas constantly (BTC into USDT, USTD in Ukrainian Hryvnas). One day banks may ask where do i get my money, and due to reasons that I've written above, there can not perceive my BTC earnings a legal. So, my only option is cash and low-budget buyings.
3. Problem. Possibility of buying
We estimated above, that earnings in BTC are possible, but buying something may seem not so possible. OF course there are shady schemes that will help you out to buy something like an apartment for yourself in BTC, but you won't have a reliable paper for the kind of operation due to absence of legal tax regulation, therefore where will exist questions about operation itself. For things like iPhone, stores may also use shady schemes, but the amount of money not so sufficient as buying a flat.
As a conclusion, I may suggest that BTC salary in Ukraine is highly questionable due to restricted areas of spending BTC, absence of tax law for that kind of operations and non-transperent monitoring of that operations by the government.
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