As of July 2026, Ukraine has no dedicated cryptocurrency tax. Income from selling crypto is taxed under the general rules of the Tax Code: 18% personal income tax plus a 5% military levy, for a total of 23%. Individuals must declare this income themselves by 1 May of the following year and pay the tax by 1 August.
Last updated: July 2026.
At a Glance
- The current rate is 23%: 18% personal income tax and 5% military levy. Not 5%.
- The preferential 5% rate appears in draft law No. 10225-d. It has passed only its first reading and is being prepared for the second reading.
- The Law on Virtual Assets No. 2074-IX was adopted but has not entered into force.
- An exchange, exchanger, or P2P counterparty will not pay the tax for you. You must declare the income yourself.
- Without documents proving the purchase of cryptocurrency, the State Tax Service may tax the entire amount received, not just the profit.
Is Cryptocurrency Taxed in Ukraine?
Yes, cryptocurrency income is taxable. There is no separate “crypto tax,” so general provisions of the Tax Code apply to this type of income.
The statements “there is no special cryptocurrency law” and “there is no tax” mean different things. The first reflects the current regulatory situation; the second does not. Holding, buying, exchanging, and selling cryptocurrency is not prohibited. However, cryptocurrency does not yet have a dedicated legal status.
The Law on Virtual Assets links its entry into force to amendments to the Tax Code. The required amendments have not entered into force, so the law itself has not become effective either. This is confirmed by the official text of Law No. 2074-IX, marked as “has not entered into force”.
Crypto income of an individual in Ukraine is income from the sale or exchange of virtual assets. In the absence of special regulation, it is classified as foreign-source income if the payment comes from abroad, or as other income if paid by a Ukrainian resident. The rate is 18% personal income tax plus a 5% military levy.
This approach is set out in the individual tax consultation issued by the State Tax Service, No. 4217/IPK/99-00-24-03-03 dated 05.08.2025. The consultation shows how the tax authority applies current general rules to cryptocurrency transactions. Its content is explained in this analysis of the State Tax Service consultation on cryptocurrency taxation.
For more on the current restrictions and the unimplemented law, see our article on the legal status of cryptocurrency in Ukraine.
What Is the Cryptocurrency Tax Rate in Ukraine in 2026?
The current rate is 23%: 18% personal income tax and a 5% military levy. Current legislation does not provide a separate rate for cryptocurrency.
The 23% total results from applying the general tax regime for individual income. The preferential 5% rate mentioned in some publications is not currently in force. It is a provision of draft law No. 10225-d.
How Income Is Classified: Foreign-Source or Other Income
The classification depends on the source of the payment:
- foreign-source income — if funds are paid by a foreign platform, exchange, or another non-resident;
- other income — if the payment comes from a Ukrainian resident.
In both cases, the applicable rates are 18% personal income tax and a 5% military levy. The difference is how the income is reported in the tax return, not the overall rate. This classification is stated in State Tax Service consultation No. 4217/IPK dated 05.08.2025.
If you receive cryptocurrency as payment for work or services, your status and the nature of your activity also matter. The situation for a sole proprietor may differ from a one-off asset sale by an individual. A personal calculation requires advice from a tax adviser.
What Amount Is Taxed?
Without documents confirming the acquisition cost, the State Tax Service may treat the full amount received as taxable income rather than the difference between the sale and purchase prices. This is the main financial risk for cryptocurrency holders.
For example, a person purchases an asset using their own funds and later sells it with a small margin. If purchase confirmations are retained, they demonstrate the source of the invested funds. Without such documents, it is more difficult to substantiate expenses to the tax authority.
Keep records of the date, price, platform, and fee for every purchase. Supporting evidence may include statements, receipts, order history, and records of transfers between wallets.
Under the current regime, there is no unconditional rule that only annual net profit is always taxed. This approach is proposed by draft law No. 10225-d, but it has not been adopted.
Which Transactions May Need to Be Declared
| Transaction | How it is treated under the general rules |
|---|---|
| Selling cryptocurrency for hryvnia through an exchange, exchanger, or P2P | The income received must be declared; the rate is 18% personal income tax and 5% military levy |
| Payment for work in USDT from a foreign client | May be classified as foreign-source income; the rate is 18% personal income tax and 5% military levy |
| Payment in cryptocurrency from a Ukrainian resident | May be classified as other income; the rate is 18% personal income tax and 5% military levy |
| Withdrawing funds from an exchange to a bank card | The method of receiving funds does not replace analysis of the income itself |
| Exchanging one cryptocurrency for another | Current legislation provides no special exemption |
The table describes the general regime. The specific classification depends on the taxpayer’s status, payment source, and nature of the transactions. Systematic trading or regularly receiving payment in cryptocurrency requires an individual assessment.
Cryptocurrency Tax Myths You Should Forget
As of July 2026, Law No. 2074-IX has not entered into force, and draft law No. 10225-d has not passed its second reading. Therefore, the preferential 5% rate, crypto-to-crypto exchange exemptions, and special licensing remain draft provisions.
| Myth | Reality as of July 2026 | Supporting source |
|---|---|---|
| “Cryptocurrency was legalized from 1 January 2026, and the Law on Virtual Assets entered into force” | Law No. 2074-IX was adopted on 17.02.2022 but has not entered into force | Official status of the law |
| “A preferential 5% personal income tax rate or a tax amnesty for cryptocurrency is in effect” | 5% is a provision of draft law No. 10225-d. It passed its first reading on 03.09.2025 and is being prepared for the second reading. The current rate is 23% | Draft law No. 10225-d card |
| “Crypto-to-crypto exchanges are not taxable” | Such an exemption is provided by the draft law, not current legislation. There is currently no special exemption | Draft law review stage |
| “Crypto exchanges and exchangers are licensed by the NBU or NSSMC” | Ukraine has no special licensing regime for virtual asset service providers | Overview of virtual asset regulation in Ukraine |
Where Did the 5% Rate Myth Come From?
In autumn 2025, the Verkhovna Rada supported draft law No. 10225-d at its first reading. The vote took place on 3 September, and the draft received 246 votes. This was reported by Forbes in its coverage of the draft law’s first reading.
The draft law included a transitional 5% personal income tax rate for assets acquired before it entered into force. At the time, it was expected that the new regime could start on 1 January 2026. Many publications presented this date as a forecast.
The second reading did not take place either before January or before March 2026. March had previously been named as a target for adoption. The forecast did not materialize, but some materials were not updated. As a result, the proposed rate gradually began appearing in search results as if it were already in force.
You should check the current status of the documents, not outdated forecasts. Law No. 2074-IX is marked as “has not entered into force.” Draft law No. 10225-d is at the stage of preparation for the second reading.
If you calculate tax at the 5% rate, you may underpay. This may lead to additional tax assessments, penalties, and late-payment interest.
What Changed Since 2025?
For taxpayers, the general regime has not changed. The rate remains 23%, and income must still be declared independently.
The timeline of the draft law is as follows:
- 24.04.2025 — draft law No. 10225-d on taxation of virtual asset transactions was registered.
- 13.05.2025 — consideration was postponed after a meeting at the Office of the President. The discussion concerned, among other things, the role of the NSSMC. This was reported by Financial Club.
- 05.08.2025 — the State Tax Service issued consultation No. 4217/IPK, confirming the application of general rules to crypto income.
- 03.09.2025 — the Verkhovna Rada supported the draft law at its first reading.
- 23.02.2026 — the chair of the tax committee named March 2026 as a target for adoption and reported on the possible role of the NSSMC. The statement was cited by Forbes.
- July 2026 — the draft law is still being prepared for the second reading.
Therefore, expectations regarding future regulation have changed, but the obligations of individuals have not. The tax return must be filed by 1 May of the following year, and tax must be paid by 1 August.
How to Declare Cryptocurrency Income: Step by Step
An individual must declare cryptocurrency income independently. You need to collect supporting documents, identify the source of income, file a tax return by 1 May, and pay 18% personal income tax plus a 5% military levy by 1 August.
- Collect proof of purchase.
Keep the date, price, platform, and fee for every purchase. Download order history, receipts, and account statements. Without these documents, the State Tax Service may treat the entire amount received as income.
- Calculate income for the calendar year.
Include proceeds from cryptocurrency sales and exchanges during the reporting year. Do not limit your calculation only to profitable or largest transactions.
- Determine the income type.
A payment from a foreign platform or non-resident may be foreign-source income. Funds received from a Ukrainian resident may qualify as other income. The rate is the same, but the tax return fields differ.
- File a declaration of assets and income.
The filing deadline is 1 May of the year following the reporting year. Check the current declaration form and filing procedure on the State Tax Service website.
- Pay the taxes.
Individuals pay 18% personal income tax and a 5% military levy. The payment deadline is 1 August.
- Keep the declaration and payment records.
Retain a copy of the filed declaration, the receipt confirming its acceptance, and proof of payment. You will need them if the State Tax Service asks you to explain the source of funds.
There is no tax agent for P2P and exchange transactions. An exchange, exchanger, or counterparty will not withhold tax or file a declaration on your behalf. This is the individual’s responsibility.
At MW Exchange, people ask every day which documents should be retained for a tax return. The practical rule is simple: document the entire path of funds — from purchasing cryptocurrency to selling it and receiving payment.
If the transaction has not yet taken place, first review the process in our guide on how to sell cryptocurrency.
What Happens If Draft Law No. 10225-d Is Adopted?
All provisions below are proposed, not current rules. They cannot be used to calculate tax for 2025 or 2026.
Draft law No. 10225-d provides for:
- a taxable event when cryptocurrency is exchanged for fiat funds or other assets;
- an exemption for exchanges of one cryptocurrency for another;
- a tax base in the form of annual net profit;
- a transitional 5% personal income tax rate for assets acquired before the law enters into force;
- an exemption for small amounts of proceeds;
- licensing of virtual asset service providers;
- division of supervisory powers between the NSSMC and the NBU.
Sources for verifying the draft provisions include the draft law No. 10225-d card, EY Ukraine’s analysis of the draft law, and the NSSMC’s explanation of possible regulation.
The text may change between the first and second readings. This applies to rates, exemption conditions, the tax base, and the list of taxable transactions.
There is one practical rule: do not plan taxes using the 5% rate until the relevant provisions enter into force. As of July 2026, calculations must be based on the general 23% rate.
This is general information, not tax advice. This material describes the general regime as of July 2026. It does not account for your status, nature of activity, payment source, or tax residency. Consult a tax adviser before filing a declaration. Legislation may change after the second reading of draft law No. 10225-d.
Frequently Asked Questions
Do You Need to Pay Tax on Cryptocurrency in Ukraine in 2026?
Yes. There is no special crypto tax, but income from selling cryptocurrency is taxed under the general rules of the Tax Code. The rate is 18% personal income tax plus a 5% military levy, for a total of 23%. Individuals declare the income themselves because there is no tax agent for P2P and exchange transactions.
Is the Preferential 5% Cryptocurrency Tax Rate in Effect?
No. The 5% rate is included in draft law No. 10225-d, which passed only its first reading on 3 September 2025. As of July 2026, it is being prepared for the second reading. No preferential rate is currently in force. Calculating tax at 5% may result in underpayment, additional assessments, and late-payment interest.
Is Exchanging One Cryptocurrency for Another Taxable?
Current legislation has no special exemption for crypto-to-crypto exchanges. Such an exemption is proposed by draft law No. 10225-d, but it has not been adopted. Therefore, its provisions cannot be applied to the current tax return. It is best to clarify the classification of a specific transaction separately with a tax adviser.
What Is the Deadline for Filing a Tax Return and Paying Tax?
The declaration of assets and income must be filed by 1 May of the year following the reporting year. Tax must be paid by 1 August. These are the general deadlines for declared individual income. No separate deadlines have been established for cryptocurrency income.
What Happens If You Do Not Declare Crypto Income?
The State Tax Service may ask you to explain the source of funds and provide supporting documents. Undeclared proceeds may be reclassified as income, with additional personal income tax and military levy assessed. Penalties and late-payment interest may also apply. You should therefore keep documents relating to purchases, sales, and the movement of funds between platforms and wallets.
Is Cryptocurrency Legal in Ukraine?
Holding, buying, exchanging, and selling cryptocurrency in Ukraine is not prohibited. However, it does not yet have a dedicated legal status. The Law on Virtual Assets No. 2074-IX was adopted in 2022, but as of July 2026, it has not entered into force.
Conclusion
- The current rate for an individual’s crypto income is 23%: 18% personal income tax and 5% military levy.
- The preferential 5% rate, annual net profit as the tax base, and the exemption for crypto-to-crypto exchanges remain draft-law provisions.
- The declaration must be filed by 1 May, and tax must be paid by 1 August.
- Purchase documents are critically important. Without them, the State Tax Service may tax the full amount received.
Before filing your declaration, download transaction histories from all platforms and retain payment confirmations. Restoring this data after losing access to an exchange may be difficult.
If you plan to buy USDT or buy cryptocurrency, make sure the transaction leaves a clear documentary trail. The exchange itself does not reduce tax, but a complete history helps confirm the movement of funds. Information about the service and its physical office in Kharkiv is available on the about MW Exchange page.
