Ukraine unveils cryptocurrency tax proposal, excluding stablecoins and crypto-to-crypto transactions

Ukraine's financial authorities have published a draft framework for cryptocurrency taxation, revealing their intention to impose a tax rate of up to 23% on some cryptocurrency income.
Crypto-cryptocurrency transactions will be exempt from taxation. The National Securities and Stock Market Committee of Ukraine (NSSMC) has announced a tax framework, which will impose an 18% tax on cryptocurrency transactions.
The proposed tax would reportedly include a 5% military tax. NSSMC Chairman Ruslan Magomedov said, "The cryptocurrency tax issue is no longer hypothetical and is rapidly approaching.
"The reality is that the tax framework is based on the market," he said, explaining, "We have prepared a tax framework to enable Parliament to take an informed decision based on various options, taking into account the market impact and tax liability."
According to the proposed tax, a tax would be levied when cryptocurrencies are converted into fiat currency or used to purchase goods and services, but crypto-to-crypto transactions would be exempt.
This is the same measure as other countries such as Austria, France, and Singapore. In addition, the NSSMC will not allow foreign exchange tax in the case of stablecoins pegged to foreign currencies based on existing tax laws.
The report stated that because exchange transaction profits are not subject to tax, it would be appropriate to apply either no tax or a low tax rate of 5-9%.
This framework will support mining, staking, and hard forks.
The bill also includes a proposal to tax various cryptocurrency-related activities, such as cryptocurrency mining, airdrops, etc. The NSSMC has proposed to cap tax exemptions for small transactions up to a certain amount, since mining is generally considered a business activity.
He explained that this can be achieved.