Virtual assets in Ukraine to be taxed at 18% income tax and 5% military levy or preferential rates of 5% and 9%
Ukraine's National Securities and Stock Market Commission (NSSMC) has published a comprehensive document outlining a taxation matrix for virtual assets (VAs), setting forth a taxation model of 18% personal income tax and 5% military levy, or preferential rates of 5% and 9%.
The document was shared by the head of the Commission, Ruslan Magomedov, on his Telegram channel on Tuesday.
"In the digital age, taxation of cryptocurrencies is no longer a hypothesis – it's a rapidly approaching reality. That's why the NSSMC has developed a matrix presenting various taxation options for virtual asset transactions – from mining to airdrops. The model draws on international practices and has been adapted for the Ukrainian legal framework," Magomedov said.
According to the matrix, taxable income is defined as net income (income minus expenses) or gross revenue. The timing of income recognition can follow the general rule, which involves recognizing income upon receipt, as compensation for goods/services, or at the time of asset disposal – including exchange for other assets, virtual or otherwise.
Alternatively, income may be recognized at the time virtual assets are exchanged for currency or non-digital assets. Only disposals of VAs in exchange for currency or non-virtual assets are treated as taxable events.
The document highlights countries that do not tax crypto-to-crypto transactions, including Austria, France, Singapore (which does not impose capital gains tax on individuals or corporations), Malaysia (crypto transactions are tax-exempt unless regular or recurring), and Georgia (where individuals are exempt from income and capital gains taxes on crypto sales).
The matrix also outlines taxation approaches for specific operations such as mining, staking, hard forks, and airdrops.
According to the document, token creation, free token supply, free storage and transfer of VAs, exchange of VAs, and token modifications are not subject to VAT. However, the supply of goods/services in exchange for cryptocurrency, rewards for storage and transfers of VAs, and certain modifications that enhance an existing token or result in a new token's creation will be subject to VAT. Such transactions may also qualify for VAT exemption under Article 135(1)(e) of the EU VAT Directive as services relating to payment instruments.
As reported by Magomedov on March 12, the taxation matrix was presented to the parliamentary finance, tax, and customs policy committee, and a draft bill has been prepared.
Separately, in an interview with Interfax-Ukraine, Deputy Governor of the National Bank of Ukraine, Kateryna Rozhkova, stated that a bill on virtual assets – outlining the division of regulatory powers – will be developed by October 2025 with technical support from international partners. The legislation will be based on the European MiCA directive.