Ukraine Introduces 18% Tax on Crypto Profits, 5% Military Levy
Ukraine's parliament has advanced legislation to regulate digital assets, passing the 'Crypto Legalization and Taxation Bill' in its first reading. The bill, supported by 246 lawmakers, establishes an 18% income tax and a 5% military levy on crypto profits. A temporary 5% rate will apply during the first year for fiat conversions.
The framework distinguishes between individual and corporate taxation. Individuals will pay taxes based on annual profit calculations—sales revenue minus acquisition costs. Assets held prior to the law's enactment qualify for reduced rates.
This regulatory MOVE aims to bring transparency to Ukraine's digital economy while generating revenue. Parliamentary discussions continue, with amendments expected before the second reading.
