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Ukraine’s crypto tax debate continues as officials consider a lower 5-10% rate while others push for standard income taxes of up to 23%.
Ukraine is moving toward legalizing the crypto market, with officials considering a 5-10% tax on crypto income to help fund the state budget and military. In an interview with a local news media, Taras Kozak, a member of Ukraine’s securities regulator advisory group, said that tax rates are still being debated, but reiterated that “all citizens income should be taxed.”
“I lean toward a small tax — between 5% and 10%. All citizen income should be taxed because our state lives on this money, our army fights, we buy weapons, and we maintain security.”
Taras Kozak
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A bill to regulate crypto is still in the works though. According to Danylo Hetmantsev, head of Ukraine’s finance committee, the first reading could happen by late March, with a second one soon after. He expects full legalization by summer, but Kozak thinks it might take until 2026.
The report notes that many in the Ukrainian crypto space favor a 5% tax on income, but the government is considering standard rates — 18% personal income tax plus a 5% military levy. Those unable to prove their initial investments may face a 23% tax on total holdings, the report notes. Hetmantsev has reportedly dismissed hopes for a lower tax as crypto profits will be taxed like stock investments, meaning the full capital gain is taxable.
Read more: Ukraine promises sanctions over Russia’s use of Bitcoin in foreign trade: report
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