Ukraine’s Ministry of Finance and State Tax Service have launched an information campaign called “Taxes Protect”. As part of this initiative they published practical explanations on how income from crypto assets should be taxed under the current rules. For retail traders and active investors the message is simple: crypto income is not outside the tax system and must be declared like any other investment gain.
Under the existing framework, individuals who earn income from operations with crypto assets are required to pay 18% personal income tax and a 5% military levy on their net capital gain. In the official example the authorities describe a trader who made 96,000 hryvnias of annual profit from crypto transactions and must calculate and pay tax on that amount.
### How crypto income is declared todayCrypto income is treated as additional personal income. A trader must calculate their net result over the year, submit an annual declaration and pay the tax bill within the standard deadlines. The declaration is filed through the taxpayer’s electronic cabinet on the website of the State Tax Service, generally by 1 May of the year following the reporting period.
The Ministry explains that from the personal income tax paid, a portion goes to the state budget and a larger share goes to local budgets. The military levy supports defence and security needs. In their campaign, officials emphasise that unpaid taxes mean less funding for the army and public services, linking individual tax discipline directly to national resilience.
### Draft law on virtual assets: towards a dedicated regimeIn parallel, Ukraine continues to work on a comprehensive law on virtual assets that will provide a dedicated regulatory and tax framework for the crypto sector. The draft passed its first reading in the Verkhovna Rada in September 2025 and is being refined by lawmakers and regulators.
The bill proposes a similar overall tax burden on crypto income, around 23%, but introduces a temporary “preferential period” during which investors would be able to legalise past income at reduced rates: 5% personal income tax plus 5% military levy. This is meant to encourage transparent reporting and bring more of the crypto economy into the formal system.
### What it means for traders and investorsFor now, market participants must rely on the general rules articulated by the Ministry of Finance and the State Tax Service: calculate net profit from crypto operations, file a declaration on time and pay 18% personal income tax plus a 5% military levy. The communication campaign is designed to reduce uncertainty and show that the state expects voluntary compliance even before a specialised law enters into force.
For investors this combination of clearer guidance and a forthcoming virtual assets law sends an important signal. Ukraine is preparing to move from a grey zone to a regulated, taxable crypto market, with a balancing act between fiscal needs and the goal of keeping the country attractive for compliant exchanges, brokers and professional traders.
