In Ukraine, the process of declaring cryptocurrency is mandatory, but its features are still at the development stage due to recent changes in legislation. As of today, the Tax Service of Ukraine requires that income from transactions with cryptocurrency be declared as a business activity. This means that individuals are required to pay an income tax at the rate of 18%, as well as a military levy of 1.5% of the income received. At the same time, a recent draft law proposes to change this system by reducing the tax rate on income from investments in cryptoassets to 5% for individuals for a period of five years, which will partially reduce the tax burden on investors.
In addition to tax requirements, recent changes in legislation also oblige companies working with cryptoassets to obtain special permits from the state to conduct activities with virtual assets. The law provides for the creation of a registry of cryptocurrency service providers that will be able to regulate their work and require them to comply with AML (anti-money laundering) rules and security measures to protect personal data.
Despite these changes, some investments in cryptocurrency are still in the "gray zone" due to imperfect law enforcement and limited judicial practice on this issue, which sometimes allows to avoid tax obligations.
