Ukraine is moving forward with a structured crypto taxation plan, even as the country battles an ongoing Russian invasion. The National Securities and Stock Market Commission (NSSMC) has proposed a framework that imposes an 18% tax on crypto profits and a 5% military levy, aiming to align with international standards while fueling wartime resources.
Ukraine Proposes Military-Funded Crypto Tax System Amid War
NSSMC Director Ruslan Magomedov shared the initiative via Telegram, revealing flexible rates (5%–9%) for specific categories modeled after countries like France, Austria, and Singapore. The framework only taxes crypto when assets are converted to fiat or used for purchases—crypto-to-crypto transfers remain tax-free.
A detailed matrix covers all transaction types, including mining, staking, and airdrops. VAT will not apply to storage or free distributions, but token modifications and crypto payments may be taxed. Some cases could benefit from EU VAT exemptions.
The plan, expected to launch before mid-2025, could boost state revenue and military support as Ukraine navigates both digital innovation and defense needs.
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