Ukraine Eyes Crypto Tax to Support State Budget and Defense

Story Highlights

• Ukraine plans 5-10% crypto tax to fund budget and defense.

• Public supports 5% tax on cryptocurrency earnings.

• Ukraine imposes 23% tax on undocumented crypto holdings.

In a significant development, Ukraine is making progress toward legalizing the cryptocurrency market. Officials are considering a tax of 5-10% on crypto income to support the state budget and military. The government has adopted this policy within an ongoing program to oversee cryptocurrency operations and enforce equal taxation rules.

Public Supports 5% Tax on Crypto Earnings in Ukraine

The securities regulator advisory group member Taras Kozak recently spoke about this issue in an interview. He indicated that ongoing discussions focus on tax rate determinations. According to him, all taxable income belongs to every citizen regardless of any other considerations. The government intends to bring cryptocurrency income into standard taxation as per the statement made by its representative.

In February 2025, Danil Getmantsev, who leads the Verkhovna Rada’s finance and tax committee, announced that authorities are striving to expedite the passage of the crypto legalization bill. According to his predictions, the first review process would start in March 2025. Before proceeding to the second parliamentary stage, the bill needs to secure approval during its current stage. The target is to conclude the new law with immediate speed, according to Getmantsev.

Taras Kozak disagreed with Getmantsev. He predicts it will take up to 2026 before the entire process is completed. He maintains optimism that the bill will finish all its necessary stages of approval to become effective by 2026. The execution of cryptocurrency earnings by taxpayers will become mandatory for taxation when this law is successfully enacted.

Kozak established that cryptocurrency investors as well as businesses operating with virtual currencies need to make payments to the Ukrainian state budget. The public opinion reveals that taxpayers endorse a 5% tax rate for crypto income. Most Ukrainian taxpayers stand behind the chosen taxation rate.

Ukraine Sets 23% Tax for Undocumented Crypto Holdings

Taxpayers in Ukraine currently need to pay both an 18% income tax to the state and a 5% military tax based on their financial status. According to the new crypto tax regulation, investors who cannot disclose their first investment funds will be taxed at 23% for all of their holdings.

Kozak advocates for a crypto tax rate between 5% and 10% as a reasonable benchmark. Tax revenues play multiple essential roles to maintain national stability while supporting military operations and defense programming. Therefore, he sees taxation as a necessary step for the country’s security and financial well-being.