How to Report Crypto Income in Ukraine: Your Complete 2024 Tax Guide

Understanding Crypto Tax Obligations in Ukraine

As cryptocurrency adoption grows in Ukraine, understanding how to report crypto income is crucial for legal compliance. The State Tax Service of Ukraine (STS) classifies crypto earnings as investment income, subject to taxation under current legislation. Whether you’re mining, trading, or receiving crypto payments, failing to declare these assets can result in penalties of 5-25% of unpaid taxes plus fines.

Key regulations include:

• Personal Income Tax (PIT) rate of 18% on crypto profits
• Military Duty surcharge of 1.5%
• Tax-exempt threshold: Transactions under UAH 100,000/year (approx $2,500)

Step-by-Step Guide to Reporting Crypto Income

1. Calculate Your Annual Crypto Gains
   Track all taxable events: sales, exchanges, mining rewards, and airdrops. Use tools like Koinly or CoinTracking to automate profit/loss calculations.
2. Convert to Hryvnia
   Document the UAH equivalent of crypto transactions using the National Bank of Ukraine exchange rate on the transaction date.
3. Complete Tax Form 1-DF
   Report total annual crypto income in Section III “Income from Investment Assets.” Include:
   • Date of each transaction
   • Crypto type and amount
   • UAH value at acquisition and disposal
4. Submit Before May 1st
   File electronically via the STS portal or at your local tax office. Keep records for 3 years.

Common Crypto Tax Mistakes to Avoid

• Ignoring small transactions – Every trade/swap is a taxable event
• Forgetting mining income – Block rewards count as income at market value
• Miscalculating cost basis – Track acquisition costs for accurate profit reporting
• Missing deadlines – Late filings incur 10% monthly penalties

Frequently Asked Questions (FAQ)

Do I pay tax on crypto-to-crypto trades?

Yes. Exchanging BTC for ETH triggers capital gains tax on the BTC’s appreciation since acquisition.

How is staking income taxed?

Staking rewards are taxable as ordinary income at their UAH value when received.

Are NFT sales taxable?

NFT profits follow the same 18% PIT + 1.5% military duty rules as other crypto assets.

What if I lost money on crypto?

Losses can offset capital gains for 3 years. Report them in Section III of Form 1-DF.

Can I use foreign exchanges?

Yes, but you must convert all transactions to UAH and report worldwide crypto income as a Ukrainian resident.

Disclaimer: This guide provides general information only. Crypto regulations evolve rapidly – consult the State Tax Service or a certified tax advisor for personalized guidance.