Is Crypto Income Taxable in Ukraine 2025? Complete Tax Guide

Understanding Crypto Taxation in Ukraine for 2025

As cryptocurrency adoption grows in Ukraine, understanding tax obligations becomes crucial. In 2025, Ukraine maintains clear regulations: all crypto-related income is taxable under the Tax Code. Following the 2022 legislation that formally recognized virtual assets, individuals and businesses must report crypto earnings to the State Tax Service. This guide explains current rules, calculation methods, and compliance steps to avoid penalties in Ukraine’s evolving digital economy.

Ukraine’s 2025 Crypto Tax Framework Explained

Ukraine’s tax system treats cryptocurrency as intangible property, with these key provisions:

• Tax Rate: 18% Personal Income Tax + 1.5% Military Duty = 19.5% effective rate on profits
• Taxable Events: Selling crypto for fiat, crypto-to-crypto trades, payment for goods/services, mining rewards, staking income, and airdrops
• Tax-Free Threshold: None – all profits are taxable regardless of amount
• Loss Carryforward: Capital losses can offset future gains for up to 3 years

How to Calculate Your Crypto Taxes in Ukraine

Follow this step-by-step process:

1. Determine Profit: Selling Price – Purchase Cost (including transaction fees)
2. Apply Tax Rate: Multiply profit by 19.5%
3. Track Cost Basis: Use FIFO (First-In-First-Out) method for asset valuation
4. Document Transactions: Maintain records of dates, amounts, and wallet addresses

Example: Buying 1 BTC for ₴1,000,000 and selling for ₴1,500,000 results in ₴500,000 profit. Tax owed: ₴500,000 × 19.5% = ₴97,500.

Reporting Crypto Income: Deadlines & Procedures

Ukrainian taxpayers must:

• File an Annual Tax Declaration by May 1, 2026 (for 2025 income)
• Use Form №3-ППП for individual entrepreneurs or Form №1-ДФЛ for individuals
• Pay taxes by August 1, 2026
• Report in Ukrainian Hryvnia (UAH) using exchange rates from the National Bank of Ukraine

Penalties for Non-Compliance

Failure to comply risks severe consequences:

• Late filing: 10% fine on unpaid tax
• Underreporting: 25-50% penalty on evaded amounts
• Criminal charges for large-scale evasion (>₴1.12 million in 2025)
• Asset freezing and bank account seizures

FAQs: Crypto Taxes in Ukraine 2025

Q: Is crypto-to-crypto trading taxable?
A: Yes – every trade is a taxable event. Calculate profit based on UAH value at transaction time.

Q: Do I pay tax on mined cryptocurrency?
A: Yes – mining rewards are taxed as ordinary income at market value when received.

Q: How are DeFi earnings like staking taxed?
A: Staking rewards are taxable upon receipt. Later sales trigger additional capital gains tax.

Q: Can I deduct crypto transaction fees?
A: Yes – exchange and network fees reduce taxable profit when calculating capital gains.

Q: Are NFT sales taxable?
A: Yes – treated like other crypto assets. Profit from NFT sales faces 19.5% tax.

Q: What if I hold crypto without selling?
A: No tax applies until you dispose of assets through sale, trade, or payment.

Staying Compliant in 2025

With Ukraine implementing advanced blockchain analytics, transparency is essential. Use crypto tax software to automate calculations and maintain detailed records. Consult a Ukrainian tax specialist for complex cases, especially regarding business activities or large portfolios. As regulations evolve, subscribe to State Tax Service updates to ensure ongoing compliance.