A project has been introduced in Ukraine that regulates the taxation of cryptocurrency operations in the country. This project also includes an updated text of the "Virtual Assets Act" with amendments in accordance with the European MiCA regulation.

One of the changes in the Tax Code is that taxpayers now determine their overall financial profit or loss from virtual asset operations. The overall financial profit is calculated as the difference between the income from the sale of virtual assets and their initial cost. If the taxpayer receives not only virtual assets but also money or goods/services as a result of an exchange, the agreed value of the virtual assets at the time of the exchange is considered their initial cost. If the taxpayer holds multiple virtual assets with different initial costs, they are sold in the order of their acquisition.

The sale of virtual assets is considered when receiving cash for them or making settlements for goods, work, or services using virtual assets. If the taxpayer only receives virtual assets as a result of such an operation, it is not considered a sale. Similarly, the first realization or redemption of electronic money tokens, asset-backed tokens, or service tokens by their issuers is also not considered a sale. Income from such operations is subject to a single tax, similar to the income of individuals from the provision of services.

Investment profit from virtual asset operations is included in the overall monthly or annual taxable income and does not take into account the value of virtual assets obtained by the taxpayer through emission or gratuitous transfer.

Operations with virtual assets are accounted for separately from other income, expenses, and operations with other investment assets. Investment profit from virtual asset operations is determined upon their sale. The taxpayer is required to submit a tax declaration based on the results of the calendar year.

If the overall financial result from the sale of virtual assets was positive and these assets were owned by the taxpayer for less than 365 days, such profit is included in the overall annual taxable income and subject to a tax rate of 18%. If the overall financial result from virtual asset operations was negative, this amount is taken into account to reduce the overall financial result in subsequent years until full offset.

Service providers involved in the circulation of virtual assets must retain and provide the tax service with information about citizens' operations with virtual assets, as well as the income and expenses related to these operations.

On June 14, the regulatory acts will be discussed at the meeting of the Consultative Council on the Regulation of Virtual Assets. They will be supplemented with considerations and comments afterward.