Ukraine Considers Imposing Income Tax of Up to 23% on Crypto Assets

The National Securities and Stock Market Commission of Ukraine (NSSMC) has proposed a new taxation scheme that would impose personal income tax of up to 23% on cryptocurrency transactions.

However, this proposal excludes crypto-to-crypto transactions and stablecoins from tax obligations.

Details of the Proposed Crypto Tax

In a framework released on April 8, 2025, the NSSMC explained that cryptocurrency transactions converted into fiat currency or used to purchase goods and services would be subject to an 18% tax, plus an additional 5% military levy, bringing the total to 23%.

According to information quoted from Coinvestasi, NSSMC Chairman Ruslan Magomedov emphasized that the issue of crypto taxation is now a reality that must be addressed.

Exemptions for Certain Transactions

Crypto-to-crypto transactions are planned to be tax-exempt, following the approach adopted by several European countries such as Austria and France, as well as crypto-friendly jurisdictions like Singapore.

Stablecoins backed by foreign currencies also have the potential to be tax-exempt or subject to a reduced tax rate between 5% and 9%, referring to Ukraine’s tax code which currently exempts income from foreign exchange transactions.

Regulation of Other Crypto Activities

The NSSMC framework also includes regulations for activities such as mining, staking, hard forks, and airdrops.

Crypto mining is generally treated as a business activity, though there may be a tax-free threshold for transactions under a certain amount.

For staking, potential taxation options include treating it as “passive business income” or taxing it only when the assets are converted into fiat currency.

Meanwhile, hard forks and airdrops may be taxed as ordinary income or upon conversion of the tokens into fiat.

A Step Toward Comprehensive Crypto Regulation

In December 2024, the Head of the Ukrainian Parliament’s Tax Committee, Daniil Getmantsev, stated that the draft bill to legalize crypto assets was in its final stages and expected to be completed early this year.

Previously, in March 2022, President Volodymyr Zelenskyy signed a law establishing a legal framework for the crypto market, laying the foundation for digital asset regulation in the country.