Ukraine has taken a big step toward formalizing its approach to taxing cryptocurrencies, with the National Securities and Stock Market Commission (NSSMC) releasing a detailed taxation matrix for virtual assets.
The proposal outlines both standard and preferential tax models, signalling a move to align the country’s financial system with global digital asset norms.
Shared publicly on Telegram by Commission head Ruslan Magomedov on Tuesday, the proposal suggests a personal income tax rate of 18% and an additional 5% military levy on virtual asset gains.
Alternatively, the model includes preferential tax rates of 5% and 9% for certain categories. These recommendations draw on international examples and are tailored to fit within Ukraine’s legal framework.
“That’s why the NSSMC has developed a matrix presenting various taxation options for virtual asset transactions – from mining to airdrops.”
“In the digital age, taxation of cryptocurrencies is no longer a hypothesis – it’s a rapidly approaching reality,” Magomedov said.
Income would generally be recognized when received or when assets are exchanged for fiat currency or non-virtual goods and services. Transactions that involve only virtual assets would not trigger a tax under this model.
The proposed rules define taxable income either as gross revenue or net income after expenses.
However, rewards or services that involve token modification or crypto payments for goods and services may be taxed.
The document also provides tax guidance on mining, staking, airdrops and hard forks. Activities like free token supply, token creation, and storing virtual assets would not be subject to VAT.
This applies especially if they are considered payment-related services. The Commission noted that this classification may need additional interpretation and legal guidance.
Ukraine’s effort to establish a clear tax policy for virtual assets comes at a time of economic strain and heightened interest in digital finance.
Some of these transactions may qualify for exemptions under Article 135 of the EU VAT Directive.