Taxation of cryptocurrency in Ukraine 2026

While Mr. Hetmanцев and his gang continue to chew on the draft law on the taxation of income from virtual assets, written with the left foot, the fiscal machine does not stop, and from any of our income the state wants its share.

Currently, our tax authorities consider crypto as an intangible asset and, accordingly, tax arises at the moment of receiving income from this asset - it can be a sale/exchange for fiat or the purchase of goods or services for crypto. As long as it is lying in your wallet or on the exchange, there is no obligation to pay taxes.

Without going into details about how taxation occurs for legal entities and individual entrepreneurs, let's talk about ordinary workers - individuals.

If you are professionally engaged in trading cryptocurrency or earning on futures or have significant income from crypto staking, then, unfortunately, all of this is subject to taxation when withdrawn to fiat (yes, I am not a supporter of this approach, but it is what it is).

With the adoption of the bill on taxation of income from virtual assets, the taxation scheme is supposed to change, as it promises a shift to taxing net income (profits minus losses), which corresponds to practices around the world, but unfortunately today, EVERYTHING you withdraw from the exchange to fiat is considered by tax authorities as your income. But I remind you that as long as it is on the exchange, there are no obligations to pay taxes.

To legalize such income, it is necessary to submit an annual tax declaration on personal income received in the previous year to the Electronic Cabinet of the taxpayer on the website of the State Tax Service of Ukraine by May 1 and pay taxes.

The taxation scheme here will be, as with any other income of individuals, composed of personal income tax and military levy, which together amount to 23%.

It should also be noted that currently tax authorities do not have any effective mechanism for tracking cryptocurrency transactions (especially using exchanges), so you can keep it all hidden at your own risk, but do not forget that you can always fall under the financial monitoring of the bank, and this may lead to questions from the tax authorities (and sometimes even from the police).

Therefore, opinions here may vary, considering the fragmented legislation (so far) regarding the regulation of cryptocurrency circulation in Ukraine, but everyone manages their own risk management and decides whether to legalize or not.

We hope that the bill on taxation of income from virtual assets will someday be properly finalized (preferably not by the current convocation of the Verkhovna Rada) and our market will start working. The blue dream here would be to introduce a preferential taxation regime (with declaration but without taxation, or with a taxation rate of 1%) to attract crypto enthusiasts from around the world, following the example of some Asian countries, but of course, this is just a dream, as it won’t happen 😂