The post Ukraine Plans 10% to 23% Crypto Tax to Boost Budget and Military Aid appeared first on Coinpedia Fintech News
Ukraine is moving forward with its plan to legalize and tax cryptocurrencies, aiming to generate funds for its budget and military. Ukrainian lawmakers are working on a crypto tax bill, with the final version expected by mid-2025. The proposed tax rates range from 5% to 10%, but for undocumented crypto holdings, the tax could go as high as 23%.
Ukraine Moves Closer to Crypto Taxation
As Ukraine continues to legalize cryptocurrency, officials are drafting a bill that would introduce a 5% to 10% tax on crypto transactions. The goal is to use these funds to support the state budget and strengthen military operations amid the ongoing conflict with Russia.
According to Danylo Hetmantsev, head of the Verkhovna Rada’s Committee on Finance, Tax, and Customs Policy, the primary text of the bill has already been finalized. However, discussions are ongoing about how authorities will monitor and regulate crypto transactions.
Hetmantsev further noted that the bill is expected to pass its first reading by March 2025, but full implementation might take longer.
Debate Over Tax Structure
Meanwhile, Taras Kozak, deputy of the Kyiv City Council, believes the process could extend into 2026. He noted that Ukrainians widely support a 5% crypto tax which could be a fair rate. However, the government is also considering a more traditional tax structure.
Under current rules, individuals pay an 18% income tax plus a 5% military tax, bringing the total to 23%. If applied to crypto income, investors could face significantly higher tax burdens.
23% Tax for Undocumented Crypto Holdings
One of the key provisions of the bill is a 23% tax rate on undocumented crypto assets. Investors who fail to provide proof of their initial investment sources may be required to pay this higher tax.
As Ukraine pushes ahead with crypto legalization, the final decision on tax rates will play a crucial role in shaping the country’s digital asset growth.
