How to Report Bitcoin Gains in Ukraine: Your 2024 Tax Compliance Guide

Understanding Bitcoin Taxation in Ukraine

As Bitcoin and cryptocurrency adoption grows in Ukraine, understanding tax obligations is crucial. Under Ukrainian law, cryptocurrencies like Bitcoin are classified as “intangible assets” for tax purposes. This means profits from selling or exchanging them are subject to capital gains tax. With the State Tax Service (STS) increasing scrutiny on crypto transactions, proper reporting isn’t optional—it’s mandatory to avoid penalties. This guide breaks down everything you need to know about declaring Bitcoin gains in Ukraine for 2024, ensuring you stay compliant while maximizing your returns.

Step-by-Step Guide to Reporting Bitcoin Gains

Follow this structured process to accurately report your Bitcoin profits to Ukrainian authorities:

1. Calculate Your Gains: Determine profit by subtracting your acquisition cost (purchase price + fees) from the disposal value. Use transaction records from exchanges or wallets.
2. Prepare Documentation: Gather all records including:
   • Trade histories from exchanges (e.g., Binance, Kuna)
   • Wallet addresses and transaction IDs
   • Receipts for purchases or mining costs
3. Fill Out the Tax Declaration (Form 1-DF): Report gains in Section III.1 of the annual income declaration. Specify cryptocurrency transactions under “Income from Sale of Property.”
4. Submit Electronically: File via the STS Diia Portal or through a tax advisor by May 1^st following the tax year.
5. Pay Taxes Owed: Transfer 18% Personal Income Tax + 1.5% Military Levy (total 19.5%) by August 1^st.

Calculating Your Bitcoin Gains and Losses

Accurate calculation prevents under/overpayment. Use this formula:

Gain = (Selling Price – Purchase Price) – Associated Fees

Key considerations:

• Cost Basis: Includes purchase price, transaction fees, and mining expenses (if applicable).
• FIFO Method: Ukraine typically requires “First-In-First-Out” accounting for multiple purchases.
• Loss Offset: Capital losses can reduce taxable gains but not regular income. Unused losses carry forward 5 years.
• Mining Income: Treated as self-employment revenue—subject to 22% social contributions + 19.5% income tax.

Example: Bought 0.5 BTC for ₴200,000 (including fees), sold for ₴300,000. Taxable gain = ₴100,000. Tax owed = ₴19,500 (19.5%).

Important Deadlines and Penalties

Missing deadlines triggers fines:

• Declaration Due Date: May 1^st (for prior calendar year)
• Tax Payment Deadline: August 1^st
• Late Filing Penalty: 10% of unpaid tax + 1.2% monthly interest
• Underreporting Fine: 25-50% of evaded tax; criminal liability for large-scale violations

Tip: Use STS-approved accounting software like 1C or consult a crypto-savvy tax advisor for complex portfolios.

Frequently Asked Questions (FAQs)

Is Bitcoin legal in Ukraine?

Yes. Ukraine legalized cryptocurrency in 2022 under the “Virtual Assets Law,” treating it as regulated property for tax purposes.

What tax rate applies to Bitcoin gains?

19.5% total (18% Personal Income Tax + 1.5% Military Levy) on net profits. No VAT applies.

Do I need to report if I only held Bitcoin without selling?

No—taxes apply only upon disposal (selling, trading, or spending). Long-term holdings aren’t taxed until realized.

How do I calculate cost basis for Bitcoin?

Include original purchase price, exchange fees, and transfer costs. Maintain records in UAH using exchange rates at transaction time.

What if I made a loss on Bitcoin transactions?

Report losses in your declaration. They offset gains from other crypto/assets and carry forward for up to 5 years.

Can I deduct expenses like trading fees?

Yes—transaction fees, exchange costs, and hardware (for miners) are deductible when calculating net gains.

How do I submit the tax declaration?

Electronically via the STS Diia Portal or through authorized tax software. Physical submissions require notarization.

Disclaimer: Tax laws evolve. Consult the State Tax Service of Ukraine or a qualified tax professional for personalized advice.