Important Draft Laws. Issue 42: Cryptocurrency Taxation, Liquidation of the Fund for Support of Farms, and Introduction of Mentorship for Youth

During this period, 39 draft laws were registered in Parliament: four submitted by the President of Ukraine, six by the government, and 29 by MPs. Among them are proposals on the taxation of virtual assets, a new law on mentorship, new procedures for assisting farmers (including establishing a single payment agency), and mandatory quotas for creating jobs for combat veterans. In addition, Parliament is considering granting extra leave for service members and canceling draft deferments for college and vocational school students who have turned 25. Read more about these and other legislative initiatives in this overview.

New selection criteria and a higher salary for the Human Rights Commissioner

MPs are proposing to adopt a new law (Bill No. 13181) on the Human Rights Commissioner of the Verkhovna Rada of Ukraine. Compared to the current law, the draft clarifies the requirements for candidates for the position of Commissioner and their representatives, changes their working conditions, and assigns them new functions: assisting in the return of Ukrainian citizens from the aggressor state and facilitating their departure from temporarily occupied territories, as well as assisting in documenting war crimes.

Currently, the Commissioner must be a Ukrainian citizen aged at least 40 with experience in the field of human rights. The draft proposes lowering the minimum age to 35 while adding a requirement of at least a master’s degree and a minimum of 10 years of experience in human rights protection. The procedure for selecting candidates would also change. Currently, candidates may be nominated by the Speaker of Parliament or by at least a quarter (113) of all Members of Parliament. The winner is elected by secret ballot (using paper ballots). Under the draft law, Parliament would announce an open competition for the position, and candidates would submit documents (including a CV, a motivation letter, a diploma of higher education, documents confirming experience in human rights protection, proof of Ukrainian language proficiency, consent to a special background check, etc.). These documents would be made public, except for the diploma and passport. The Parliamentary Committee on Human Rights, De-occupation, and Reintegration would select three finalists, from whom MPs would elect the Commissioner by open vote.

Under existing law, the Commissioner’s representatives are only briefly mentioned, with their areas of work determined by the Commissioner. The bill proposes defining them as a distinct unit responsible for coordinating the work of the Commissioner’s Secretariat. It also establishes procedures for their appointment, outlines their duties, and specifies their focus areas, including children’s rights, the defense sector, non-discrimination, and the national preventive mechanism. This system allows the Commissioner and their representatives to conduct unannounced visits to places of detention, such as prisons, pre-trial detention centers, and psychiatric hospitals, to monitor conditions and prevent torture or ill-treatment.

In addition, the draft law sets official salaries: the Commissioner would receive 55 times the subsistence minimum for non-disabled persons (currently about UAH 166,500), and their representatives would receive 35 times the subsistence minimum (about UAH 106,000). The draft also specifies allowances for years of service, bonuses, and paid leave. Currently, the Commissioner’s base salary is set by a government resolution at UAH 15,000. According to the 2024 declaration, the total salary of the Human Rights Commissioner (including allowances, bonuses, and material assistance) amounted to UAH 1.221 million, or an average of UAH 102,000 per month.

Changes to the mentorship system for children and youth

Under the current law, mentorship is a narrowly defined form of support provided only to orphans and children deprived of parental care who live in residential institutions. Its purpose is limited to assisting in preparation for independent living, covering daily life skills, legal awareness, and social adaptation. A mentor can only be a private individual. All actions are carried out through social service centers within a formalized procedure and contract.

Bill No. 13200 allows legal entities, such as businesses or charitable organizations, to act as mentors. The recipients of mentorship would also expand beyond orphans to include children from families in difficult life circumstances, deported children, children of fallen soldiers, underage pregnant girls, single mothers, and young people up to the age of 23 who lack adequate support. The scope of mentorship tasks would also broaden: whereas it previously focused mainly on everyday adaptation, legal awareness, and socialization, the draft would now include support in the educational process (help with studying, explaining educational material, assistance with homework, motivation to learn, support during admission to educational institutions or exam preparation, and facilitation of access to academic resources), development of professional skills, prevention of risky behavior, promotion of a healthy lifestyle, and assistance with employment or entrepreneurial activities.

The bill defines mentorship as a separate social service. This would include recruiting and training future mentors, assessing their readiness, matching mentors with mentees, supporting the mentor throughout the entire mentorship period, assisting in difficult situations, and carrying out awareness campaigns to promote mentorship. This service could only be provided by officially registered organizations that have received appropriate approval from the state and are included in the registry of social service providers. The draft does not specify what such “approval” would entail—it may be defined later in subordinate regulations. The State Child Affairs Service would coordinate activities, keeping records of mentor candidates, mentors, and mentorship contracts in the Unified Information and Analytical System “Children.”

Appointing a guardian in advance

Bill No. 13215 proposes allowing any adult to appoint in advance a person who would become their guardian (caring for a child under 14 or an adult declared legally incapacitated) or custodian (responsible for a child aged 14 to 18 or an adult with limited legal capacity) if they lose capacity. Additionally, any person would be able to specify who should be appointed as guardian or custodian for their children if they lose capacity or die. Parents would also be able to issue such instructions regarding their children in case of death or other circumstances preventing them from fulfilling their parental duties (loss of capacity, disability, illness). Both parents could issue these instructions jointly or separately, but the list of designated persons in either case must be identical. It would also be possible to indicate persons who must not be appointed as guardians. Existing guardians or custodians would be allowed to designate a successor guardian for their ward in advance in case of their death or inability to continue fulfilling their duties. A person could cancel such an instruction or issue a new one anytime. The most recent instruction would be considered valid.

To appoint a future guardian or custodian for themselves or their children, a person would issue a “care and custody instruction,” which must be notarized and registered in the Inheritance Register. If the person who issued the instruction is later deprived of parental rights or dismissed from their position as guardian or custodian (e.g., due to abuse or neglect of duties), all their instructions would automatically become invalid. In such cases, the notary must cancel these instructions in the register upon receiving information about a relevant court or guardianship authority decision. Courts and guardianship authorities would have access to the register.

When a situation arises requiring the appointment of a guardian or custodian, the guardianship authority or court would be obligated to check whether a valid instruction exists. If such an instruction is found, the appointment must follow it, provided the designated person meets legal requirements (is legally competent, is not registered with or receiving treatment from psychiatric or addiction treatment institutions, has not been deprived of parental rights, etc.) and the appointment serves the best interests of the ward. If all designated persons are unable, unwilling, or unfit due to health reasons, the authorities would appoint a guardian under general procedures. Preference would be given to individuals who have family or close personal relationships with the ward.

If the guardianship authority believes that appointing the person named in the instruction would not serve the best interests of the child or adult needing guardianship, it can appeal to the court, which will make the final decision.

These rules would also apply to adoptive parents and the temporary placement of orphans and children deprived of parental care. In such cases, priority in appointing temporary caregivers would be given to persons designated in the instructions of the parents or guardians.

Taxation of virtual assets

The Law on Virtual Assets will enter into force after amendments to the Tax Code regarding the taxation of virtual asset transactions. To this end, MPs have developed Bill No. 10225-d, which proposes such tax amendments.

Virtual assets are intangible objects that have value and can be transferred or used electronically. Such assets include NFTs (unique digital objects, such as digital artworks or music), cryptocurrencies, or tokens (digital securities). These assets are circulated through digital systems, typically using blockchain technology. This technology stores information in a sequential chain of blocks, where each new block contains data about the previous one. As a result, it is impossible to alter or falsify data without noticeable interference. 

According to the draft law, virtual asset market participants would include ordinary users (anyone buying or selling cryptocurrency or tokens for personal purposes) and service providers involved in the circulation of virtual assets. These legal entities assist others in conducting transactions: they store assets or keys (unique digital combinations that allow control over the asset), perform exchanges (e.g., exchanging one cryptocurrency for another), process transfers, or act as intermediaries or brokers. Such providers include cryptocurrency exchanges, trading platforms, digital wallets, or marketplace operators.

A virtual asset may be secured or unsecured. A secured virtual asset is a digital object linked to a real-world item and confirms the owner’s right to receive a specific asset or service. For example, a token may entitle the holder to receive 1 gram of gold, 10 kilowatt-hours of electricity, or 1 ton of CO2 carbon credit. Such an asset is “backed” by property or a contract, meaning that the company, organization, or exchange must provide the relevant good or service to the token holder. On the other hand, an unsecured asset is purely a digital object with market value, such as cryptocurrency. The circulation of these assets is now being brought into the legal framework, and transactions with digital assets will be subject to taxation.

Individuals who sell virtual assets would pay tax on the difference between the purchase and sale prices. For example, if a person buys an asset for UAH 10,000 and sells it for UAH 15,000, the tax would be applied to the UAH 5,000 profit. This income would be reported in a separate line of the tax declaration. The tax rate would be 23%, which includes 18% personal income tax and 5% military levy. If a taxpayer incurs a loss from operations with virtual assets, that loss could be carried forward to subsequent tax years and deducted when determining profits in the future. For assets acquired before the law comes into force, a transitional rule is proposed: such assets could be declared as part of annual income for 2026 and taxed at a reduced rate—5% personal income tax plus 5% military levy (a total of 10%). This would effectively legalize virtual assets accumulated in previous years.

The bill prohibits individual entrepreneurs and companies using the simplified taxation system from conducting transactions with virtual assets. If taxpayers under the simplified system engage in such a transaction, they would be required to switch to the general taxation system. In this case, they must maintain complete accounting records, submit tax reports, and pay taxes under the general system; similarly, if a company is a resident of the Diia.City special regime conducts a transaction with virtual assets, it would lose its right to the preferential tax regime and switch to the general taxation system starting from the month following such a transaction.

Legal entities that buy or sell virtual assets must keep separate accounting records for such transactions. Profit or loss would be determined as the difference between the income from the sale and the value of the assets. The asset value would include the costs of acquiring, creating, or exchanging the assets, provided these expenses are properly documented. If a company receives assets free of charge, the costs would include the confirmed value of acquiring them (e.g., transaction fees or other related services). Losses may be carried forward to subsequent reporting periods under the general rules if no profit is realized during the reporting period. Legal entities would pay corporate income tax on profits from such assets at the standard rate of 18%.

Legal entities acting as intermediaries on the virtual asset market (such as cryptocurrency exchanges, trading platforms, and exchangers) would be taxed under the general rules, at the standard corporate income tax rate of 18%. Within 60 days of starting operations with Ukrainian residents, they would be required to register with the tax authorities of Ukraine. Each year, by January 31, such companies would have to submit an electronic report to the tax authorities on operations with virtual assets. This report would include information about transactions conducted by clients from Ukraine (dates, income and expense amounts, and types of assets involved). Based on this data, the tax authority could conduct desk audits (i.e., without an on-site visit to the taxpayer). If violations by the intermediary are identified (such as failure to submit the report or submission of false information), this would constitute grounds for a documentary audit. The tax authority would have five years (1,825 days) from the deadline for report submission to impose fines. If the report is not submitted, this limitation period would not apply.

If a company fails to register as a service provider, it would face a fine of 20 minimum wages, or UAH 160,000 (based on the minimum wage of UAH 8,000 in 2025). Failure to submit the annual report would result in a fine of 100 minimum wages, or UAH 800,000. For late report submission, the fine would be 0.5 of the minimum wage for each day of delay, but no more than 100 minimum wages. If the report is submitted with errors or incomplete data, the fine would be 0.5 of the minimum wage for each transaction that needs to be corrected.

A transitional period is planned for 2026–2029. In 2026, fines would be applied at a reduced rate of only 10% of the established amounts, and in 2027–2029 at 25%. This would allow market participants to adapt to the new requirements gradually.

Virtual asset issuance, placement, exchange, or redemption operations would not be subject to VAT.

Thus, the state is not merely introducing taxes on cryptocurrencies and tokens—it is establishing a new system of control and regulation for digital assets. This would help regulate the market, legalize income, minimize fraud risks, and ensure additional revenue for the state budget.

Centralization of state support for farmers: establishment of a Payment Agency

The current system of state support for agricultural producers in Ukraine is based on mandatory registration in the State Agrarian Register (SAR). Applications for participation in financial support programs can only be submitted through this register. However, SAR does not manage funds or make payments—it is an electronic platform that stores information.

Currently, funding for state support programs is administered through various institutions. The key one is the Ukrainian State Fund for Support of Farms, which receives funds from the Ministry of Agrarian Policy and Food of Ukraine and distributes them to farmers under budget programs. In some cases, support funds are channeled through regional departments of agro-industrial development, the Ministry of Economy (such as compensation for domestically produced agricultural machinery and equipment), the Ministry of Agrarian Policy (e.g., grants for greenhouses or orchards), or with the involvement of international donor organizations.

Bill No. 13202 proposes changing this model by replacing the Ukrainian State Fund with a Payment Agency. This single institution would consolidate all functions, from receiving applications through SAR to decision-making, fund management, and control over their use. The agency would be subordinated to the Ministry of Agrarian Policy. It would be a budget-funded institution, financed from the state budget, but also able to attract and use international technical assistance funds, grants, charitable contributions, and the like. The agency would act as the leading manager of budget funds and the administrator of all types of state financial support for agricultural producers. The agency would employ 107 people, and in 2025, the government would be expected to allocate UAH 6.1 billion from the budget for its operation.

Additionally, the bill provides for the creation of two digital tools. The first is the Agricultural Data System (ADS), which would collect annual economic, social, financial, and environmental indicators from a representative sample of farmers. This data would be used for analytics, forecasting, and the development of state agricultural policy. All information would be anonymized but made publicly available. Data from the ADS would also be transmitted to European Union institutions under international agreements.

The second tool is the Integrated Administration and Control System (IACS). This automated digital platform would allow monitoring of the entire cycle of state support provision, from application submission to verification of the targeted use of funds. IACS would contain data on land plots, animals, products, applicants, and payment conditions. The system would enable automatic information exchange with other state registers (such as the cadastre or tax databases) and allow for both on-site inspections and remote monitoring.

IACS would be integrated with the State Agrarian Register (SAR), which would continue registering agricultural producers and storing their basic data. At the same time, IACS would have expanded functionality and served as the technical platform for administering payments. Thus, SAR, IACS, and ADS would operate in parallel within the new agricultural policy management system. However, creating three separate digital systems (SAR, ADS, and IACS) whose functions partially overlap appears overly complex. It might be more efficient to expand the functionality of the existing agrarian register rather than create new platforms, which would require significant funding and administrative resources.

Changes to the procedure for the use and lease of state-owned land

Bill No. 13203 proposes simplifying procedures for leasing state-owned land to enterprises that are 100% state-owned. If such land is not currently designated for cultivating commercial agricultural products, the lessee could assign this purpose simply by applying the State Land Cadastre—without requiring permits from state authorities or additional technical land management documentation. The existing lease agreement would remain unchanged. At the same time, state-owned enterprises would be prohibited from leasing such land to companies owned by foreigners, persons connected to the aggressor state, or those under sanctions.

The bill also proposes changes to the general rules for land auctions. To participate in an auction for the lease of state-owned agricultural land, bidders must pay a guarantee deposit equal to 100% of the starting annual lease fee (currently, the requirement is 30% for all land). Participants must also confirm they are not connected to the aggressor state or sanctioned persons.

Additionally, the bill would allow the sublease of state-owned land containing water bodies or buildings, which is currently prohibited.

Former owners of destroyed property to receive the land where the property was located without auctions or urban planning procedures

In Ukraine, many buildings and structures were destroyed during the war, and their owners lost not only their physical property but also the rights to the land underneath them. Currently, such land is considered free state or communal property and is not secured for the individuals who lost their property.

Bill No. 13174 proposes addressing this issue by allowing owners of destroyed buildings to receive, free of charge, ownership of the land where those buildings were located. This would not require participation in land auctions, even if the property rights to the destroyed structures were officially terminated in the registry due to destruction. Moreover, there would be no need to undergo the procedure for approving a new land use designation—the land could be registered with the same designation as the destroyed property.

These preferential conditions would apply for the duration of martial law and an additional five years after its conclusion.

Changes to mobilization deferrals for students and educators

Currently, the right to deferment from mobilization is granted to students who study full-time or under a dual education format (combining studies at an educational institution with practical training at an enterprise) and are pursuing a higher level of education than they already possess, as well as to doctoral candidates, medical interns, and educators working in educational and research institutions at a workload of at least 0.75 full-time equivalent (FTE).

Bill No. 13193 proposes adjusting these rules: students of vocational and professional pre-higher education institutions who enroll at the age of 25 or older would no longer have the right to deferment. This rule would not apply to students who enrolled before they turned 25.

Additionally, the bill clarifies that the right to deferment would apply not only to medical interns (doctors who have completed university and are undergoing basic practical training) but also to medical residents (doctors who have completed their internship and are undergoing advanced specialization in a chosen medical field, such as surgery, cardiology, or oncology).

Furthermore, the bill proposes extending the right to deferment not only to educators and researchers at educational institutions but also to instructors of art, technical, scientific, sports, or patriotic clubs who work in state or municipal institutions at a workload of at least 0.75 FTE and who were employed as of the beginning of 2025.

New employment rules for veterans: quotas, compensation, and penalties

Bill No. 13180 proposes a new employment system for combat veterans after the war ends. Employers with more than eight employees must hire veterans under a quota system. During the war and for one year after its conclusion, the quota would be set at 2% of the workforce, increasing to 5% thereafter.

Only veterans earning more than the minimum wage (UAH 8,000) would count toward the quota. If an employer fails to meet the quota, they would be subject to a fine: double the minimum wage (UAH 16,000 per year) for each unfilled “veteran position.” For example, if the quota requires two veterans but only one is employed, the employer must pay a fine for the vacant position. Employers must also annually report to the employment center and the Ministry of Veterans Affairs on how they fulfill the veteran employment requirements.

A similar quota—4%—already exists for the employment of persons with disabilities, but the fine for each unfilled quota position is equivalent to the company’s average annual salary.

The draft law also includes incentives for businesses. If an employer hires a veteran for at least one year upon referral from the employment center, the state would reimburse half of the veteran’s salary costs (but no more than UAH 16,000) for six months. Additionally, until January 1, 2028, employers who hire veterans under the quota would pay the minimum single social contribution for them, currently UAH 1,760 (22% of UAH 8,000).

Additional leave for military members who choose to remain in service despite having the right to discharge

Bill No. 13209 proposes granting an additional 30 days of paid annual leave to military personnel who have the right to discharge due to family circumstances or other valid reasons (including captivity, loss of close relatives who served, pregnancy, having three or more children, caring for sick persons or individuals with disabilities, or single parenthood), but who choose to remain in service.

Update of sanitary and epidemiological legislation

Until 2017, the State Sanitary and Epidemiological Service performed sanitary oversight in Ukraine. After its dissolution, the key sanitary and epidemiological well-being responsibilities were transferred to the State Service of Ukraine on Food Safety and Consumer Protection (SSUFSCP). Bill No. 13205 proposes transferring the sanitary control functions currently held by the SSUFSCP to the Public Health Center (PHC) under the Ministry of Health.

The bill stipulates that the PHC (rather than the SSUFSCP) would now approve decisions regarding the discharge of wastewater into rivers and the use of wastewater for irrigation. It would also oversee drinking water quality and receive notifications about emergency pollution incidents. Additionally, the PHC and its territorial units would be added to the list of authorities that enterprises must inform about water quality deterioration (which currently includes the Ministry of Environmental Protection and local authorities).

Beyond redistributing functions between state bodies, the bill also includes provisions that could worsen working conditions for healthcare workers. Specifically, it proposes eliminating the existing state-funded insurance for medical workers. The law guarantees that medical personnel working with infectious diseases or in high-risk environments are insured at the state’s expense. The bill aims to completely remove this provision, meaning that, if adopted, the state would no longer be obliged to insure such workers. This would directly affect doctors, junior medical staff, and other professionals working in hazardous conditions.

Furthermore, the bill seeks to remove from the Law on Measures to Combat the Illicit Trafficking of Narcotic Drugs, Psychotropic Substances, and Precursors, and to Prevent Their Abuse, the article concerning the identification of individuals who unlawfully use narcotic or psychotropic substances. At present, if the police or medical institutions receive information that a person is illegally using drugs or psychotropics or is under the influence, such an individual is referred for a medical examination. The fact of use is established through signs of intoxication, test results, and witness statements. The diagnosis of “drug addiction” is determined by a medical commission, and the procedure for registering such individuals is defined by a joint order of the Ministry of Health, the Ministry of Internal Affairs, and the Office of the Prosecutor General. The bill proposes to abolish this procedure altogether without suggesting a new model or transferring it to another piece of legislation.

Protection of borrowers and their guarantors during wartime

Bill No. 13206 proposes amending borrower liability rules to banks and other creditors during martial law. If a person cannot repay a loan on time due to the war, no penalties, late fees, or other additional charges would be applied. Any such charges accrued starting from February 24, 2022, would have to be written off.

Additionally, the bill prohibits creditors from demanding repayment of debts if the borrower’s production facilities, or assets worth at least 50% of the loan collateral, are located in temporarily occupied territories or active combat zones after the start of the full-scale invasion. This applies to loan agreements where the state has provided guarantees or partially compensated the interest rate: loans issued under state business support programs, including subsidized loans (such as those under the 5-7-9% program).

The bill also prohibits creditors from seeking repayment of debts from the funds or property of individuals who acted as guarantors for such loans during martial law.