Ukraine is preparing a 23% tax on cryptocurrency: The NSSMC has presented a "taxation matrix"

Ukraine is preparing a 23% tax on cryptocurrency: The NSSMC has presented a "taxation matrix"

The National Securities and Stock Market Commission (NSSMC) has presented a concept for the taxation of cryptocurrency operations in Ukraine. The document, called the "taxation matrix," will serve as the basis for a bill expected to be submitted to the Verkhovna Rada by the end of April 2025.

According to the Commission’s proposal, the basic tax rate on income from virtual assets will be 23%—including 18% personal income tax and 5% military levy. Tax benefits are also being considered, similar to the stock market: 5% for corporate profit taxpayers and 9% for non-residents and investment companies.

The NSSMC also proposes to exempt a number of cryptocurrency operations from VAT, including mining, staking, Airdrop, exchange, and storage of assets. An exemption from VAT may also be made for Bitcoin, referring to European judicial practice.

Additionally, the matrix mentions the possibility of introducing non-taxable income limits for small investors, similar to Germany (€600) and Lithuania (€2500). The issue is currently under discussion.

However, as noted by participants in the crypto market, the proposed concept appears "raw." Experts are already pointing out potential ways to circumvent the new legislation: cold wallets, stablecoins, transactions through legal entities in other jurisdictions, as well as unofficial exchanges.

According to analysts, effective taxation of crypto operations will be extremely complicated without strict control and cooperation with crypto exchanges and banks. Despite Ukraine’s commitments to the IMF to complete the preparation of the legislation by the end of October 2025, practical implementation may be delayed.