In the first reading, the Verkhovna Rada adopted draft law No. 10225-d, which provides for the legalization of the virtual assets market in Ukraine and defines the rules for their taxation. This was reported by People’s Deputy Yaroslav Zheleznyak.
The document was basically supported by 246 people’s deputies. The bill envisages a general tax rate for operations with virtual assets at the level of 18% income tax and 5% military levy. At the same time, in the first year after entry into force, a preferential rate of 5% will apply for withdrawing funds in fiat. According to Zheleznyak, the document will undergo significant changes before the second reading.
The Chairman of the Verkhovna Rada Committee on Finance, Tax and Customs Policy explained that a virtual asset is defined as a special digital object (property) that exists thanks to distributed ledger (blockchain) technology. At the same time, virtual assets are not money and cannot be used as an official means of payment in Ukraine.
The document classifies virtual assets into three categories:
- asset-linked tokens whose value is stabilized by being pegged to currency or property;
- e-money tokens tied to one official currency;
- other virtual assets that do not belong to the previous two groups.
A separate taxation procedure is provided for the income of individuals: the profit will be defined as the difference between the income from the sale of assets and the costs of their acquisition. For assets purchased before the law enters into force, in case of sale during 2026, a preferential personal income tax rate of 5% is allowed.
For legal entities, new financial result adjustments are introduced, similar to those for securities. The list of expenses will be determined by the Ministry of Finance at the request of the regulator.
Operations for issuing, selling, exchanging and redeeming virtual assets will not be subject to VAT, with the exception of NFTs and assets evidencing the right to demand the transfer of property or services. Providers of services related to the turnover of virtual assets, which work with residents of Ukraine, are obliged to register with the regulatory bodies and submit annual reports.
Failure to comply with these requirements will result in fines that will be smaller during the transitional phase: in 2026 — 10% of the specified amount, in 2027–2029 — 25%.
“This is a matter of establishing clear rules of the game for market participants. Crypto legalization could potentially have a significant impact on the budget – according to Global Ledger research on the potential for taxation if the crypto market were legalized earlier, as early as 2021 – In 2024, the state could receive about UAH 8.34 billion in taxes from crypto exchanges registered in Ukraine (at a rate of 18%) and up to UAH 6.53 billion from the taxation of citizens’ incomes, emphasized Hetmantsev.
The changes to the Tax Code are expected to take effect on January 1, 2026.
