Crypto Taxes in Ukraine: The Complete 2026 Guide

Crypto Taxes in Ukraine: The Complete 2026 Guide

 

Quick Summary

Ukraine is moving toward a formal, transparent crypto tax framework. While cryptocurrencies are not legal tender, they are recognised as virtual assets with specific tax treatment proposed and refined through draft legislation. Under the evolving regime, incomeada (capital) gains and income from virtual assets are taxable, with preferential rates proposed for individuals and standard corporate taxation for businesses. The State Tax Service of Ukraine oversees compliance, and reporting obligations are expected to expand as legislation is finalised.

 

How Ukraine Classifies Cryptocurrency for Tax Purposes

 

Crypto as Virtual Assets

Ukrainian law treats cryptocurrencies as virtual assets, distinct from money, securities, or electronic money. This classification enables taxation under bespoke rules while maintaining restrictions on their use as legal tender.

 

Key Legal Framework

Ukraine’s crypto tax treatment is grounded in:

• Draft Law on Taxation of Income from Virtual Assets – proposes rates and reporting rules
• Law on Virtual Assets – establishes legal definitions and market structure
• Tax Code of Ukraine – applies income and corporate tax principles
• Guidance from the State Tax Service

 

Taxable Crypto Events in Ukraine

 

1. Selling Cryptocurrency for Fiat

Disposing of crypto for hryvnia (UAH) or foreign currency constitutes a taxable event. Taxable profit is generally calculated as proceeds minus acquisition costs.

 

2. Trading Crypto for Crypto

Crypto-to-crypto exchanges may be taxable where they result in an economic gain. Valuation is expected to be based on fair market value in UAH at the time of the transaction.

 

3. Using Crypto for Goods or Services

Using crypto to pay for goods or services is treated as a disposal of the virtual asset and may generate taxable income.

 

4. Receiving Crypto as Income

Crypto received through:

• Employment or freelance services
• Mining or staking
• Business activity
• Rewards or incentives

is taxable as income at its UAH value on the date received.

 

5. Business-Level Crypto Activity

Companies engaged in trading, mining, custody, or other crypto services must include crypto-related profits in taxable business income.

 

Crypto Tax Rates in Ukraine

 

Proposed Individual Tax Rates

Draft legislation proposes a preferential rate for individuals on crypto gains, commonly cited at 6.5% (5% personal income tax plus 1.5% military levy) during the transitional period.

 

Corporate Income Tax

Businesses are taxed under standard corporate income tax rules, generally at a rate of 18%.

 

No Separate Capital Gains Tax

Ukraine does not operate a separate capital gains tax for individuals; crypto gains are taxed as a specific category of income.

 

Reporting Requirements for Crypto in Ukraine

 

Annual Income Declarations

Individuals must declare taxable crypto income in their annual tax return once the framework is fully implemented.

 

Business Reporting

Companies must report crypto income and expenses in standard corporate tax filings, supported by accounting records.

 

Record-Keeping Obligations

Taxpayers should maintain:

• Transaction histories
• Wallet and exchange statements
• Proof of acquisition costs
• UAH valuation at transaction dates

 

How Losses on Crypto Are Treated

 

Loss Deductibility

Draft rules allow crypto losses to offset crypto gains within the same category. Losses generally cannot offset other income.

 

Special Cases: NFTs, Airdrops & DeFi

 

NFT Transactions

NFTs are considered virtual assets. Profits from NFT sales may be taxed as income or business profits depending on frequency and intent.

 

Airdrops

Airdropped tokens may be taxable if they have determinable market value and are freely disposable.

 

DeFi Activity

Income from staking, lending, or yield farming may be taxable as income. Token swaps can also create taxable disposal events.

 

How to Prepare Crypto Taxes in Ukraine

 

Tracking Transactions

Given the transition to a formal framework, maintaining accurate records and UAH valuations is essential.

 

Using Crypto Tax Tools

Crypto tax software can assist with consolidating transaction data, calculating gains, and preparing reports aligned with Ukrainian tax requirements.

 

Penalties for Non-Compliance

 

Failure to declare taxable crypto income may result in penalties, late payment interest, and audits. Enforcement is expected to strengthen as legislation is finalised.

 

Conclusion

 

Ukraine is building a modern crypto tax regime designed to encourage transparency while supporting the digital economy. With preferential rates proposed for individuals and clear rules for businesses, timely reporting and accurate record-keeping will be key to compliance as the framework comes into force.

 

References / Sources

 

• EY – Draft Law on Taxation of Virtual Assets (Ukraine)
• Global Legal Insights – Blockchain & Crypto in Ukraine
• Verkhovna Rada of Ukraine – Legislation Database
• State Tax Service of Ukraine