Ukraine plans to impose an 18% income tax on virtual assets

Ukraine has made significant progress in regulating the taxation of cryptocurrencies, with the National Securities and Stock Market Commission (NSSMC) publishing a detailed framework for the taxation of virtual assets. The proposal not only proposes a standard tax model, but also contains a preferential tax model, showing that Ukraine is actively aligning its financial system with international digital asset standards. The proposal, published by the chairperson of the Commission, Ruslan Magomedov, on Tuesday on Telegram, proposes an 18% personal income tax on the gains of virtual assets and an additional 5% military tax, which is used as a special wartime tax mainly to support the national defense. In addition, the proposal also sets preferential tax rates of 5% and 9% for specific categories. These proposals are based on international experience and adjusted in conjunction with the Ukrainian legal framework.