Ukraine Weighs Crypto Tax to Bolster Budget and Defense

Ukraine is considering a tax on cryptocurrency earnings to support its state budget and defense, according to recent developments. The government is exploring the possibility of imposing a 5-10% tax on crypto income as part of its ongoing efforts to regulate the cryptocurrency market and enforce equal taxation rules.

Public opinion in Ukraine appears to support a 5% tax on cryptocurrency earnings. Taras Kozak, a member of the securities regulator advisory group, has indicated that discussions are ongoing regarding the determination of the tax rate. He stated that all taxable income belongs to every citizen, and the government aims to bring cryptocurrency income into standard taxation.

In February 2025, Danil Getmantsev, who leads the Verkhovna Rada’s finance and tax committee, announced that authorities are working to expedite the passage of the crypto legalization bill. He predicted that the first review process would start in March 2025, with the target to conclude the new law with immediate speed. However, Taras Kozak disagreed with Getmantsev, predicting that it could take up to 2026 before the entire process is completed.

Kozak emphasized that cryptocurrency investors and businesses operating with virtual currencies need to make payments to the Ukrainian state budget. The public opinion reveals that taxpayers endorse a 5% tax rate for crypto income. Most Ukrainian taxpayers stand behind the chosen taxation rate.

In addition to the proposed tax on cryptocurrency earnings, Ukraine has set a 23% tax for undocumented crypto holdings. Taxpayers in Ukraine currently need to pay both an 18% income tax to the state and a 5% military tax based on their financial status. Kozak advocates for a crypto tax rate between 5% and 10% as a reasonable benchmark, as tax revenues play multiple essential roles in maintaining national stability while supporting military operations and defense programming.