Ukraine took an important foundational step with the signing of the Law of Ukraine “On Virtual Assets” (Law No. 2074-IX) in February 2022, which formally recognised and classified virtual assets as a legal category, although, this law has not yet entered into force.
The most current legislative development is Draft Law No. 10225-d, which proposes the tax framework that would accompany the entry into force of Law No. 2074-IX. The draft passed its first reading in the Verkhovna Rada on 3 September 2025, supported by 246 of 450 lawmakers.
As of March 2026, the draft awaits a second reading and has not yet become law and until the draft law passes and comes into force, Ukraine does not have a functioning crypto-specific tax regime.
In practice, the absence of a formal framework creates compliance uncertainty, but it does not mean crypto income is beyond the reach of the existing Tax Code. Individuals and businesses with crypto income should monitor the legislative progress closely, as enactment could happen during 2026 and may include transitional provisions for assets already held.
Capital Gains Tax Rules
Ukraine does not currently have a functioning capital gains tax framework specifically for virtual assets. The existing Tax Code applies broadly to income, but without virtual asset-specific provisions it is unclear how individual crypto gains are formally classified and assessed in practice.
The proposed framework under Draft Law No. 10225-d would establish a clear structure: net annual gains from the disposal of virtual assets would be subject to the combined 23% rate.
How gains would be calculated under the draft
Under the proposed rules, gains would be calculated on a net annual basis. Losses from virtual asset disposals would be deductible against gains in the same tax year, and any remaining net losses could be carried forward indefinitely to offset future gains.
The gain on each disposal would be the difference between disposal proceeds and the acquisition cost of the asset. Notably, crypto-to-crypto exchanges, for example, swapping one cryptocurrency for another would be explicitly exempt from tax under the draft, meaning that a taxable disposal would only arise when converting to fiat currency or other non-virtual asset consideration.
A transitional provision in the draft proposes a reduced combined rate of 10% (5% PIT + 5% military levy) for virtual assets acquired before the law comes into force that are disposed of during 2026.
This is intended to encourage holders to realise positions without the full combined rate applying immediately upon enactment.
Record keeping
Even before the law is enacted, individuals with crypto holdings have to maintain comprehensive records of all transactions, including acquisition costs, disposal proceeds, dates, and the basis for any claimed exemptions. These records will be essential once the Tax Code amendments come into force and a formal reporting obligation arises.
Income Tax Rules
Under the current Tax Code of Ukraine, income from all sources is in principle taxable.
Without virtual asset-specific provisions, the treatment of crypto income has been uncertain, with some interpretations suggesting it should be treated as “other income” subject to the standard 18% PIT plus 1.5% (or 5%) military levy on an individual basis. In practice, enforcement has been limited due to the absence of a formal framework.
Under the proposed Draft Law No. 10225-d, mining, staking, airdrops, and hard forks would be treated as personal income at the point of conversion to fiat currency, rather than at the point of receipt of the virtual asset.
This represents a more favourable timing rule than in many jurisdictions, as it defers the income recognition event to actual realisation in fiat, rather than triggering tax at each intermediate step. The value for income purposes would be the fiat equivalent at the time of conversion.
Corporate entities would be subject to the standard 18% corporate income tax on crypto transaction profits under the proposed framework. VASPs operating within the Diia.City special economic regime may have access to a reduced 5% employment tax rate on staff remuneration, though the corporate income tax rate on profits would remain at the standard level.
Mining and Staking Treatment
Mining
Under the proposed framework in Draft Law No. 10225-d, cryptocurrency received through mining would be treated as personal income at the point of conversion to fiat currency, not at the point of mining receipt. This deferral approach is a departure from the immediate income recognition model used in many other jurisdictions. Once converted, the fiat value received would be subject to the proposed combined 23% rate (18% PIT + 5% military levy).
Business expenses associated with mining — such as equipment costs and electricity — would in principle be deductible against mining income under general Tax Code principles, though the draft law does not explicitly address mining expense deductibility in detail.
As of March 2026, the draft law has not passed its second reading. Until it does, the tax treatment of mining income remains governed by the general Tax Code, where the position is uncertain. Individuals engaged in commercial-scale mining should seek legal advice on their current obligations under the existing Tax Code framework.
Staking
Under Draft Law No. 10225-d, staking rewards would similarly be treated as income at the point of conversion to fiat, consistent with the approach to mining. This means that holding staking rewards in cryptocurrency form would not trigger an immediate tax obligation; the liability would arise when the tokens are converted to hryvnia or another fiat currency. DeFi staking, liquidity provision, and yield farming returns would likely be treated in the same manner under the draft’s general principle, though specific guidance on DeFi has not been provided.
As of 2026, Ukraine has not issued specific guidance on these activities beyond the draft law provisions.
NFT Taxation
Ukraine has not issued specific guidance on the taxation of NFTs as of February 2026.
Draft Law No. 10225-d addresses virtual assets broadly, and NFTs would fall within the definition of virtual assets under Law No. 2074-IX to the extent they represent a digital representation of value or rights. Under the proposed framework, investment-held NFTs disposed of at a gain would be subject to the combined 23% rate on net annual gains, calculated as disposal proceeds less acquisition cost.
For creators who mint and sell NFTs commercially, income from those sales would constitute business income subject to the applicable tax rate, either personal income tax for individuals or corporate income tax for entities. The deferral approach applicable to mining and staking (taxation at conversion to fiat) would likely not apply to NFT sales, as the receipt of fiat proceeds from an NFT sale would itself represent the taxable event.
Under the draft law, virtual asset issuance, offering, sale, exchange, and redemption would be exempt from VAT. This would in principle extend to NFT transactions, providing the activity falls within the definition of virtual asset supply. As the draft has not yet passed, VAT treatment of NFTs remains subject to general Ukrainian VAT rules in the interim.
Reporting Requirements
Under the current Tax Code, Ukrainian tax residents are required to file an annual property and income declaration (майнова декларація) if they receive income beyond standard employment income. Crypto income should in theory be reported in this declaration, with the amount converted to Ukrainian hryvnia (UAH) at the National Bank of Ukraine’s official exchange rate on the relevant transaction date.
Once Draft Law No. 10225-d comes into force, a more specific reporting framework is expected to be established by the Ministry of Finance and the State Tax Service of Ukraine. VASPs licensed under the virtual asset regime would likely become obligated to report client transaction data to the tax authority, creating a formal information trail for compliance purposes.
Ukraine signed the OECD Crypto-Asset Reporting Framework (CARF) commitment and is engaged in international tax cooperation. As the regulatory infrastructure develops, information exchange between Ukrainian authorities and foreign tax administrations is expected to expand. Taxpayers with overseas crypto accounts or transactions should be aware of the increasing reach of international disclosure frameworks.
Records of all crypto transactions should be maintained from the outset, as they will be required under any future reporting framework. The general Tax Code requirement to retain documents for at least 1,095 days (approximately three years) applies, though a longer retention period is advisable given the evolving regulatory landscape.
Penalties
Under the current Tax Code of Ukraine, failure to declare taxable income can result in financial penalties of 25% of the understated tax amount for the first offence, rising to 50% for repeated violations. Interest is also charged on unpaid tax from the date the liability was due. In cases of deliberate evasion, criminal liability is possible under the Criminal Code of Ukraine.
Once Draft Law No. 10225-d comes into force, a more structured penalty regime for virtual asset non-compliance is expected to be articulated in the accompanying Tax Code amendments. The general structure of Ukrainian tax penalties would apply to crypto-related failures in the same way as to other income categories.
Voluntary disclosure before the State Tax Service initiates an audit or investigation generally results in the best penalty outcome. Ukraine’s tax framework provides for reduced penalties in cases of self-correction, and the transitional provisions proposed in the draft law are themselves a form of legislative encouragement for voluntary compliance. Taxpayers with undeclared crypto positions should seek legal advice as the legislative process progresses.
