{"id":21382,"date":"2025-04-09T19:17:05","date_gmt":"2025-04-09T19:17:05","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=21382"},"modified":"2025-04-09T19:17:05","modified_gmt":"2025-04-09T19:17:05","slug":"ukraine-considers-up-to-23-personal-income-tax-on-crypto-in-newly-proposed-tax-scheme","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=21382","title":{"rendered":"Ukraine Considers Up to 23% Personal Income Tax on Crypto in Newly Proposed Tax Scheme"},"content":{"rendered":"
\n

Ukraine\u2019s top financial regulator is floating the idea of taxing cryptocurrency as personal income, with possible carveouts for certain foreign asset-backed stablecoins, under a newly proposed taxation matrix published on Tuesday.<\/p>\n<\/p>\n

In a translated letter introducing the potential new approach, Ruslan Magomedov, head of Ukraine\u2019s National Securities and Stock Market Commission<\/a>, said that effective tax policy is a necessary step in preventing financial abuse and facilitating the \u201clegal and responsible use of digital assets.\u201d<\/p>\n<\/p>\n

\u201cEstablishing fair and understandable taxation rules is also a prerequisite for attracting investment and integrating the Ukrainian virtual asset market into the global financial market,\u201d Magomedov added.<\/p>\n<\/p>\n

Under the NSSMC\u2019s suggested tax scheme, certain crypto transactions \u2014\u00a0essentially those in which non-stablecoin cryptocurrencies are cashed out for fiat currency or exchanged for goods or services, and during which there were no financial losses from the transaction \u2014\u00a0would be taxed at Ukraine\u2019s standard personal income tax rate of 18%, plus the additional 5% wartime levy that went into effect last December<\/a>.<\/p>\n<\/p>\n

Crypto-to-crypto transactions would not be subject to taxation under the proposed tax matrix, which is in line with how several other European countries including Austria and France, as well as crypto-friendly jurisdictions like Singapore, handle crypto taxation.<\/p>\n<\/p>\n

Because Ukraine\u2019s tax code exempts any income generated from transactions with foreign exchange values from being taxed, the NSSMC suggested \u201cit makes sense to consider a preferential rate or exemption from taxation\u201d for foreign asset-backed stablecoins and certain asset-referenced tokens (ARTs). The suggested preferential tax rate under the matrix could be either 5% or 9%.<\/p>\n<\/p>\n

The matrix also offered a variety of taxation options for other types of crypto transactions, including mining, which the NSSMC suggested could be considered a \u201cbusiness activity\u201d; staking, which the regulator said could either be \u201cconsidered as business captive income\u201d or taxed only at the cash-out stage; as well as hard-forks and airdrops, which the regulator said could either be taxed as ordinary income or only at the cash-out stage.<\/p>\n<\/p>\n

Ukraine had previously introduced a draft law similarly amending the country\u2019s tax code to cover cryptocurrency in 2023. A 2024 analysis<\/a> from Swiss blockchain analytics firm Global Ledger found that Ukraine could stand to collect over $200 million in annual taxes from crypto transactions.<\/p>\n<\/p>\n

Ukrainian President Volodymyr Zelensky officially legalized the country\u2019s cryptocurrency sector in 2022, determining the industry\u2019s regulators and giving them the go-ahead to create specific regulations. The National Bank of Ukraine is currently working on a draft law based on the European Union\u2019s (EU) Markets in Crypto Assets (MiCA) regulation.<\/p>\n<\/p>\n

Ukraine has been a candidate for EU membership since 2022.<\/p>\n<\/p>\n

CoinDesk reached out to the NSSMC for a comment.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Ukraine\u2019s top financial regulator is floating the idea of taxing cryptocurrency as personal income, with possible carveouts for certain foreign asset-backed stablecoins, under a newly proposed taxation matrix published on Tuesday. In a translated letter introducing the potential new approach, Ruslan Magomedov, head of Ukraine\u2019s National Securities and Stock Market Commission, said that effective tax […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-21382","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/21382","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=21382"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/21382\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=21382"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=21382"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=21382"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}