Taxation of cryptocurrencies in Ukraine: how much to pay and how to declare

There is still no separate law on the crypto market in Ukraine - The Council has already postponed its consideration due to the NBU's warning. But this does not mean that you can avoid paying taxes on the sale of bitcoin or USDT: the profit from transactions with cryptocurrency already falls under the general rules of taxation of the income of individuals. In this article - how to calculate the tax base, when to submit a declaration and what is the difference between the option through the FOP.

Why is this question relevant again?

While the specific law on virtual assets is waiting for finalization, the tax is not waiting - the profit from cryptocurrency is now included in the declaration of property status and income as "investment profit" or "other income", depending on how exactly you received and sold the asset. The absence of a special law means the absence of preferential rates or simplified accounting, not the absence of an obligation to pay.

What is the current rate?

For an individual who is not registered as a FOP, income from the sale of cryptocurrency is taxed at the rate of 18% personal income tax plus 5% military levy - a total of 23% of the amount of profit, not the entire revenue. Profit is considered the difference between the sale price and the documented purchase price of the asset. If you confirm the purchase price with nothing (lost the screenshot from the stock exchange, bought for cash without receipts), the tax office may insist on taxing the entire amount received, so it is worth keeping a history of transactions from day one.

What exactly is considered a taxable event

• Sale of cryptocurrency for hryvnia, dollar or other fiat on the exchange or through P2P;
• Exchange of one cryptocurrency for another (formally, this is also an operation with the transfer of ownership);
• Payment for goods or services with cryptocurrency - here the income arises at the time of payment at the rate of the asset on that day.

Simply keeping coins in a cold or hot wallet without selling them does not generate income - the tax arises only at the time of the realization of the profit, and not from the increase in value on paper.

Example of calculation in hryvnias

Suppose you bought cryptocurrency for an amount equivalent to UAH 20,000 and sold it for UAH 35,000. Taxable profit - UAH 15,000 (35,000 - 20,000). From this amount: 18% personal income tax = UAH 2,700, 5% military tax = UAH 750. Total to be paid - UAH 3,450, not UAH 35,000, as sometimes mistakenly scares newcomers. If the exchange rate for converting cryptocurrency into hryvnia on the date of the transaction is required for reporting, you can use the data of the exchange at the time of the transaction - for reference on the exchange rate of the hryvnia to other currencies, there is courses page on the website, which is updated daily.

Declaration: deadlines and documents

The declaration of assets and income for the previous year is submitted by May 1 of the following year, and the tax calculated based on the results of the declaration is paid by August 1. The declaration includes the aggregate annual profit from all cryptocurrency transactions, not each transaction separately. For confirmation, you should keep:

• extracts from the history of stock exchange or P2P-platform operations;
• receipts for withdrawing funds to a bank card;
• screens of the exchange rate on the date of each significant transaction, if the exchange does not keep the history for a long time.

Banks through which you withdraw money from crypto exchanges may ask for documents confirming the origin of funds, especially for large amounts - this is a standard financial monitoring procedure, and not a reason to panic.

When the FOP option makes sense

If transactions with cryptocurrency are not a one-time sale, but a regular activity with a significant turnover, it is more profitable for an individual entrepreneur in the third group of the single tax: the rate of the single tax there is fixed and significantly lower than the combination of personal income tax and military duty, plus simpler accounting. Minus - it is necessary to pay the EUV, regardless of whether there was income or not, and to keep records of income on a monthly basis. How to correctly choose a group and not miscalculate turnover limits is described in detail in the material about selection of 2 or 3 groups of FOP in 2026.

Common mistakes that cost money

• They do not keep confirmation of the purchase price - then the tax office calculates the tax from the full amount of the sale;
• Withdraw large amounts to the card in one payment and cannot explain the source of the funds to the bank;
• They think that the exchange of one cryptocurrency for another is not a taxable event, and they do not record such transactions at all;
• It is expected that a special law on the crypto market will release from past obligations - it will regulate the future, and not cancel the declaration of already received profits.

Frequently asked questions

Do I have to pay tax if I just hold cryptocurrency and don't sell it?

No. Taxable income arises at the time of sale, exchange for another cryptocurrency or payment for goods and services. The increase in the value of coins on paper while they are in the wallet is not taxed.

What will happen if you do not declare the income from cryptocurrency?

Formally, this is tax evasion with fines and penalties on the amount owed. In practice, the risk increases when you withdraw significant amounts through a bank account - the bank may request an explanation of the source of the funds under the law on financial monitoring, and then the undeclared income becomes visible.

Can crypto income be taxed as a sole proprietorship?

Yes, and for active traders, it is often more profitable in terms of rates and simpler in terms of accounting than submitting an annual declaration of a natural person. It is necessary to register the FOP with the relevant KVED, select a single tax group and pay the ESS every month, regardless of the turnover.