Verkhovna Rada prepares new rules for taxing profits from crypto assets

Parliament develops legal framework for digital assets

The Verkhovna Rada is preparing to consider draft law No. 10225-d, which aims to regulate cryptocurrency. The initiative outlines rules for taxation.

How the tax will be calculated

Lawmakers propose taxing only the profit obtained. This means that only the difference between the purchase and sale price of an asset will be subject to tax.

For example, if an investor buys Bitcoin for US$10,000 and then sells it for US$15,000, the tax base will be US$5,000.

Key provisions of the proposals

The document contains several important points that will affect the operation of the crypto industry:

• Exchanging one cryptocurrency for another will not be subject to taxation.
• A transitional personal income tax rate of 5% is introduced for certain operations involving assets acquired previously.
• Annual income up to the level of the minimum wage will be exempt from tax payments.
• Crypto exchanges are required to undergo authorisation, and controls on the origin of funds will be strengthened.

Implementation timelines

Preliminary estimates suggest the law is planned for adoption as early as November this year. However, the new rules themselves will only come into force in 2027.

It is important to note that until the document is finally adopted, existing regulations remain in effect. No changes will occur for users until the law enters into force.