Ukrainian Parliament Urged to Consider Cryptocurrency Tax Bill

The draft law “On Virtual Assets” has passed the tax committee and is recommended for consideration in the first reading. This was announced by the head of the committee, Danylo Hetmantsev.

General Provisions

The draft categorizes all virtual assets (VAs) into three types:

• tokens tied to assets such as currency or property;
• electronic money tokens — linked to a single official currency;
• other VAs not related to the first two types.

In its current form, the authors of the draft propose equating electronic money tokens with electronic money as understood by the law “On Payment Services.” However, VAs are not considered money and cannot be used as an official means of payment in Ukraine.

Ownership of crypto assets can be acquired through issuance, transaction, law, or court decision, confirmed by possession of cryptographic keys. The draft law presumes the legality of ownership unless otherwise determined by a court.

A public offering of VAs requires a mandatory “white paper” — a document with detailed information about the asset, issuers, and risks. Trading access requires authorization and information disclosure.

Service providers related to the circulation of VAs (storage, trading, transfer, etc.) must also be authorized, meet organizational and financial requirements, and ensure client protection.

Taxes

For personal income tax, it is proposed to tax income from VA operations separately from other income and investment profits.

The taxable object will be the profit from VA operations within a year — the difference between sales income and acquisition costs.

Exemptions from the tax burden include:

• income from crypto-to-crypto exchange operations and from the sale of VAs within one minimum wage;
• the value of VAs obtained through issuance (creation) or gratuitous transfer from their issuers or offerors and/or received solely in exchange for personal data;
• losses incurred in previous periods, until they are offset (with some exceptions);
• for VAs acquired before the law’s enactment, individuals will have the right to a preferential personal income tax rate of 5% if sold in 2026.

For corporate income tax, new differences are introduced to adjust the financial result similarly to securities. The list of expenses considered in VA operations will be determined by the Ministry of Finance upon the regulator’s proposal.

Operations involving the issuance, placement in any form of management, sale, exchange, or redemption of virtual assets are not subject to VAT except for:

• sales and exchanges of NFTs;
• sales and exchanges of VAs certifying the right to demand the transfer of property or service provision;
• services of providers related to VA circulation (excluding consulting services, taxed on general grounds).

Single tax payers are prohibited from VA operations. Service providers related to virtual asset circulation cannot use the simplified tax system.

Administration

Cryptocurrency companies operating in Ukraine must register with the controlling authorities and submit an annual report on VA operations concerning individuals and legal entities who are Ukrainian residents.

Failure to comply with these requirements will result in fines, which will be applied at reduced rates during the transition period (10% of the established fine in 2026, 25% in 2027-2029).

The authorities expect the aforementioned changes to the Tax Code to take effect on January 1, 2026.

The enactment of the law “On Virtual Assets,” approved in 2021, has been postponed until the taxation of crypto operations is adopted.

According to the new draft law, Ukraine will forgo tax incentives for bitcoin operations.

The task of developing cryptocurrency regulation is part of Ukraine’s National Revenue Strategy for 2024-2030 and the €50 billion reform list.