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– Ukraine has proposed an 18% tax on personal income and a 5% military levy on profits from digital assets.

crypto tax for individuals will be levied on their crypto income and calculated on annual sales revenue.

According to the bill, cryptocurrency or other digital assets will not be used as official means of payment.

The Ukrainian parliament has taken an important step towards regulating digital assets. On Wednesday, the Verkhovna Rada approved the first reading of the bill On legalization and taxation of cryptocurrencies, aimed at establishing clear rules of taxation of cryptocurrencies and strengthening the country’s digital economy.

The Parliament passed the bill in the first reading (Bill No. 10225-d) with the impressive support of 246 out of 450 lawmakers who voted in favor. The main purpose of the bill is to clarify the crypto system and impose a tax.

It is proposed to impose an 18% tax on personal income and a 5% military levy on profits from digital assets. However, for the first year after the law comes into effect, there will be a reduced tax rate of 5% when converting cryptocurrencies into fiat currencies. The move is aimed at regulating cryptocurrencies and making the digital economy more transparent.

Ukrainian MP Yaroslav Zheleznyak announced an update of the bill in Telegram and noted that additional edits will be made before the second reading.

The bill introduces a separate tax regime for individuals and legal entities. For individuals, the tax will be levied on crypto-income, and the amount will be calculated as the difference between the annual income from the sale and the cost of acquisition.

Any assets acquired before the law came into force are subject to a reduced 5% personal income tax (PIT) when sold in 2026. But actions such as issuing, offering, selling, exchanging or redeeming virtual assets are not subject to VAT.

The bill also tightens security measures in cryptocurrency. Now providers offering cryptocurrency-related services to residents of Ukraine must register with the supervisory authority and provide annual reports on transactions. Failure to comply with this requirement will result in a fine of 10% of the standard amount in 2026 and 25% of the standard amount in the period from 2027 to 2029.

Can cryptocurrency be used for payments in Ukraine?

According to the head of the Committee on Financial, Tax and Customs Policy, Daniil Getmantsev, virtual digital assets are not considered legal tender. Thus, cryptocurrency or any other digital assets cannot be used as an official means of payment. The bill defines virtual assets as a special type of digital property that exists in electronic form on the basis of distributed registry technology (blockchain).

Furthermore, the bill classifies virtual assets into three

tokens: their value is stabilized by linking them to assets such as currency or real estate.

E-money tokens: These are linked to a single official currency.

Other virtual/digital assets: A broad category of tokens that do not fall into the first two categories.

This important event may become a turning point in Ukraine’s cryptocurrency legislation.