Legal approaches to taxation of transactions with digital assets in the EU: experience for Ukraine

Abstract

Problem setting. With the development of digital technologies and the rapid growth of the digital asset market, governments face the important task of developing effective mechanisms for taxing transactions with these assets. The year 2024 is a turning point for global regulation in this area. In the European Union, this area has received considerable attention. The introduction of regulatory initiatives on digital assets allows for a transparent legal framework for an effective fiscal policy that promotes investment and the development of innovative technologies. The example of the EU shows various legal approaches to the taxation of transactions with digital assets, including both attempts at unification and reflection of the national peculiarities of the member states.

Analyses of recent researches and publications. Certain issues of the legal nature and development of virtual assets have been studied by such national scholars as: A. Kud, M. Kucheriavenko, E. Smychok, A. Ovcharenko. With regard to the contributions of domestic scholars to the studied area of international experience in taxation of digital assets, the following scholars should be noted: L. V. Tovkun, S. O. Hrytsai, I. M. Kozak, O. Y. Akimenko. However, despite the numerous developments of scholars in this area, the taxation of transactions with digital assets is an urgent problem that requires an analysis of international experience to determine the most effective practices for Ukraine.

Purpose of research is to analyze the international experience of legal regulation of taxation of transactions with digital assets and income from them in the EU (on the example of France and Germany) and to justify the choice of effective approaches to improving the national taxation system in this area.

Article’s main body. The article examines the international experience of legal regulation of taxation of transactions with digital assets on the example of France and Germany. The author analyses the current legislative approaches of the European Union, in particular, the Markets in Crypto Assets Regulation (MiCA), which provides clear regulation of transactions with crypto assets, investor protection and prevention of money laundering. The article also highlights the peculiarities of taxation of digital assets in Germany, where general tax legislation applies, and France, which has developed detailed rules for the exchange of crypto assets.

Conclusions and prospects for the development. The conclusions of the article include recommendations for adapting effective EU approaches to the Ukrainian tax system in order to create a transparent legal environment for digital asset transactions and protect the interests of investors.

A comparative analysis of approaches to the taxation of digital asset transactions in different EU countries shows that the EU, through the implementation of the MiCA and DAC8 , provides clear and transparent rules for the taxation of profits derived from digital asset transactions, which contributes to legal certainty and market stability.  Differentiated tax rates and transitional periods that allow the market to adapt to new conditions are an important part of effective regulation.