In Ukraine, cryptocurrencies are legally classified as virtual assets, considered digital or movable property rather than legal tender. The country's regulatory status is "regulated," meaning a dedicated legal framework, the Law on Virtual Assets, has been adopted. However, its full enforcement, including specific tax rules, is pending further legislative amendments and secondary regulations. While legalized, the comprehensive operational framework is still being established. The State Tax Service of Ukraine (STS) is the primary authority responsible for the taxation of cryptocurrency transactions. The legal basis for this is rooted in the adopted Law of Ukraine on Virtual Assets (Law No. 2074), with specific tax provisions being shaped by pending legislative initiatives such as Bill 246-1 and Bill No. 10225-d. For individuals, all income and gains derived from cryptocurrency are currently subject to a combined tax rate of 19.5%, which includes an 18% personal income tax and a 1.5% military levy. There is no distinction between short-term and long-term capital gains, meaning all profits are taxed at this flat rate regardless of how long the asset was held. Converting crypto to fiat currency is a taxable event, with the gain calculated as the sale proceeds minus the cost basis. Corporate entities engaged in crypto activities are subject to the standard 18% corporate income tax. Value Added Tax (VAT) of 20% generally applies to related services, though the exemption status for crypto trading itself remains somewhat unclear. Specific crypto activities are also subject to the 19.5% tax rate. Staking rewards are taxed upon receipt or disposal. Mining rewards are considered income and taxed accordingly, with potential deductions for entrepreneurial costs if conducted as a business. Decentralized Finance (DeFi) yields and gains are taxed at 19.5%, with each disposal event typically considered taxable. Non-fungible tokens (NFTs) are treated as virtual assets, and their sales are taxed at 19.5% without any specific collectibles distinction. Crypto-to-crypto swaps are currently considered taxable events. Ukraine is actively working on comprehensive reforms. Legislative proposals, including Bill 246-1 and Bill 10225-d, aim to establish a new tax regime. These bills propose increasing the military levy to 5%, leading to a combined individual rate of 23%. They also suggest exemptions for low-value crypto-to-crypto swaps and introduce a one-time 10% legalization fee for virtual assets held prior to the new law's enactment. The full implementation of the Law on Virtual Assets and associated tax rules is anticipated post-2025, with an ongoing effort to align with the European Union's MiCA framework.
Tax Rates
| Effective individual rate | 19.5 |
| Capital gains tax | 19.5% flat rate, no holding period distinction, proposed 23% on fiat conversions |
| Income tax on crypto | 19.5% (18% base + 1.5% military levy) on all crypto income |
| Corporate tax | 18% |
| VAT | 20% on related services, trading exemption unclear |
Activity Taxes
| Staking | 19.5% tax on rewards upon receipt or disposal as income |
| Mining | 19.5% tax on rewards as income, entrepreneurial costs potentially deductible |
| DeFi | 19.5% tax on yields and gains, each disposal event taxable |
| NFTs | 19.5% tax on sales, no collectibles distinction applied |
Taxable Events
| Crypto → Fiat | Taxable at 19.5%, gain calculated as sale proceeds minus cost basis |
| Crypto → Crypto | Taxable at 19.5%, proposed exemptions for low-value or certain swaps pending |
Holding Period
| Holding period benefit | None, all gains taxed at standard rate regardless of holding duration |
Sources