Catenaa, Tuesday, April 15, 2025-Ukraine has introduced a new taxation framework for virtual assets, setting a personal income tax rate of 18% on cryptocurrency gains, along with a 5% military levy to fund defense efforts.
The proposal, released by the National Securities and Stock Market Commission (NSSMC) on April 9, 2025, outlines both standard and preferential tax models, signaling Ukraine’s move toward aligning with global digital asset regulations.
The taxation matrix includes options for both personal and business transactions involving virtual assets like mining and airdrops. The income tax will apply to gains from cryptocurrency conversions into fiat currency or non-virtual goods, but crypto-to-crypto exchanges will generally remain exempt.
The proposal also offers preferential tax rates of 5% and 9% for certain categories, drawing on international examples, such as those in Austria and France, which do not tax crypto-to-crypto transactions. Ukraine is seeking to boost state revenue amid its ongoing conflict, with plans to finalize tax legislation by mid-2025.
Ukraine’s regulatory approach includes clarification on VAT treatment for crypto activities like mining, staking, and airdrops.
Some activities may be exempt under the EU VAT Directive, though further legal guidance is needed. The NSSMC will continue engaging with market participants as it finalizes the country’s crypto tax policy.
