Is Bitcoin Gains Taxable in Ukraine 2025? Your Complete Tax Guide

As Bitcoin adoption grows in Ukraine, understanding tax obligations for 2025 is crucial for investors. With evolving regulations and the draft Law No. 10225-1 pending parliamentary approval, this guide breaks down everything you need to know about Bitcoin taxation in Ukraine next year. Stay compliant and avoid penalties by mastering these key rules.

Current Cryptocurrency Tax Framework in Ukraine

Ukraine legalized cryptocurrencies through the 2022 “On Virtual Assets” law but deferred detailed tax rules to future legislation. For 2025, taxation hinges on the proposed Law No. 10225-1, which aims to implement a structured crypto tax system. Key principles include:

• Asset Classification: Bitcoin is treated as intangible property, not currency.
• Tax Triggers: Taxation applies upon disposal (selling, trading, spending), not acquisition.
• Reporting: All transactions must be declared to the State Tax Service.

How Bitcoin Gains Will Be Taxed in Ukraine for 2025

Under the draft law, Bitcoin gains face differentiated tax rates based on holding periods:

• Short-Term Gains (held ≤365 days): 18% Personal Income Tax + 1.5% Military Tax = 19.5% total
• Long-Term Gains (held >365 days): Flat 5% Personal Income Tax (Military Tax exempt)

Example: Selling ₴200,000 worth of Bitcoin bought for ₴100,000 after 6 months yields ₴100,000 profit. Tax due: ₴19,500 (19.5%).

Tax Treatment of Different Bitcoin Transactions

Not all crypto activities are taxed equally. Here’s how common scenarios play out:

• Buying/Holding: No tax implications.
• Selling for Fiat (UAH/USD): Full capital gains tax applies.
• Trading for Other Cryptocurrencies: Taxable as a disposal event (e.g., swapping BTC for ETH).
• Spending Bitcoin: Treated as a sale—gains taxed based on value increase.
• Mining Rewards: Classified as business income, subject to 18% PIT + 1.5% Military Tax.

Step-by-Step Guide to Calculate & Report Bitcoin Taxes

Follow this process for 2025 compliance:

1. Track Transactions: Log every buy, sell, trade, and spend using tools like Keeper or CoinTracking.
2. Determine Cost Basis: Calculate acquisition cost (purchase price + fees).
3. Compute Gains: Sale price minus cost basis = taxable gain.
4. Apply Holding Period: Classify as short-term or long-term.
5. File Annually: Submit Form 3-NDFL by April 30, 2026, for 2025 gains via the Diia portal or tax office.

Penalties for Non-Compliance with Crypto Tax Rules

Failure to report Bitcoin gains in Ukraine risks severe consequences:

• Fines: 10-20% of undeclared tax liability.
• Interest Charges: 120% of the National Bank discount rate on overdue taxes.
• Criminal Liability: For evasion exceeding ₴1.1 million (≈$30,000), punishable by fines or imprisonment.

Frequently Asked Questions (FAQ)

1. Is Bitcoin legal in Ukraine in 2025?

Yes. The 2022 “On Virtual Assets” law fully legalizes cryptocurrency ownership and trading.

2. Do I pay tax if my Bitcoin loses value?

No. Losses can offset gains but aren’t refundable. Unused losses carry forward 3 years.

3. Are international exchanges reportable?

Yes. All global transactions involving Ukrainian residents must be declared.

4. How is staking or DeFi income taxed?

Rewards are treated as miscellaneous income, subject to 18% PIT + 1.5% Military Tax.

5. Can I deduct transaction fees?

Yes. Exchange, mining, and wallet fees reduce taxable gains when calculating cost basis.

6. When does the 365-day holding period start?

From the date of acquiring the Bitcoin, verified by blockchain timestamp or exchange record.

Final Tip: Consult a Ukrainian crypto tax specialist before filing. Regulations may evolve as Law No. 10225-1 progresses through Parliament. Document all transactions meticulously to leverage long-term rates and minimize liabilities legally.