Ukraine Plans 10% to 23% Crypto Tax to Boost Budget and Military Aid
Ukraine is advancing its plans to legalize and tax cryptocurrencies, aiming to raise funds for its budget and military. Ukrainian lawmakers are developing crypto taxes, which are expected to be finalized in mid-2025. this Proposed tax rate From 5% to 10%, but taxes may be as high as 23% for undocumented cryptocurrency holdings.
Ukraine moves to cryptocurrency tax
As Ukraine continues to legalize cryptocurrencies, officials are drafting a bill that would impose a tax of 5% to 10% on crypto transactions. The aim is to use these funds to support the national budget and to strengthen military operations in the ongoing conflict with Russia.
According to Danylo Hetmantsev, head of the Finance, Taxation and Customs Policy Committee at Verkhovna Rada, the main text of the bill has been finalized. However, discussions are underway on how authorities will monitor and regulate crypto transactions.
Hetmantsev further noted that the bill is expected to pass its first reading by March 2025, but full implementation may take longer.
Debate on the tax structure
Meanwhile, Taras Kozak, the representative of the Kiev City Council, Believe in this process He may extend it until 2026. He noted that Ukrainians broadly support a 5% crypto tax, which could be a reasonable tax rate. However, the government is also considering a more traditional tax structure.
Under the current regulations, individuals pay 18% income tax plus 5% military tax, which totals 23%. If applied to crypto revenue, investors may face higher tax burdens.
23% tax on undocumented cryptocurrency tax
One of the key provisions of the bill is that unlicensed crypto assets are taxed at 23%. Investors who fail to provide proof of initial investment resources may be required to pay higher taxes.
As Ukraine advances crypto legalization, the final decision on tax rates will play a crucial role in shaping the country’s digital asset growth.
