State Tax Service of Ukraine: Funds received from cryptocurrency transactions subject to tax

The State Tax Service of Ukraine has issued clarification on the taxation of personal cryptocurrency transactions. Experts point out that cryptocurrencies still do not have a specific legal status in the country and therefore there is no regulatory framework for their classification and regulation of operations. However, funds received from cryptocurrency transactions are subject to tax,

The tax authority stated that income received by an individual from the sale of cryptocurrencies is included in the total annual taxable income as foreign income if the source of payment of the income is foreign, and as other income if the income is paid by an individual who is a resident of Ukraine. Going forward, the authorities announced their intention to finalize normative bills taking into account European rules.