Crypto taxes included in Ukraine’s National Revenue Strategy

The Ukrainian government утвердило the National Revenue Strategy for 2024-2030. Among other things it provides for regulating the circulation of virtual assets (VAs).

The document was prepared by the Ministry of Finance following consultations with business representatives and international partners: МВФ, the World Bank and ОЭСР.

The parties discussed the need for the Ukrainian crypto market to align with EU initiatives. In particular, this concerns the approved in June by the OECD Committee on Fiscal Affairs’ Crypto-Asset Reporting System and amendments to the Common Reporting Standard.

It also includes the October changes to the EU Council Directive on Administrative Cooperation, which provide for rules on tax information exchange (DAC8).

It is envisaged that the exchange of information on cryptocurrencies between EU member states will take effect in 2026. The specific list of digital assets will be defined in accordance with MiCA.

In addition, EU working groups are currently working on changes to the Directive on the Common VAT System regarding approaches to taxing operations with virtual assets.

Against this backdrop, Ukraine’s National Revenue Strategy provides for:

• analysing different options for taxing VAs in Ukraine;
• preparing guiding principles for this procedure, aligned with EU rules on information exchange and OECD initiatives;
• developing a corresponding bill amending the Tax Code.

As noted, the 2021 law ‘On Virtual Assets’, approved in 2021, has been postponed until the taxation of operations with digital assets is introduced. In addition, the text of the regulatory act has been updated to reflect MiCA’s European provisions.

In turn, the Ministry of Digital Transformation presented a draft of an alternative law.

Earlier, deputy Oleksiy Zhmerenetsky stated that the working group plans to prepare a middle-ground version of regulatory legislation to reach a compromise between proposals of НКЦБФР and the Ministry of Digital Transformation.

Moreover, the IMF recommended to the NBU and the National Commission to develop an updated version of legislation regulating the crypto market in Ukraine by the end of June 2024.