Taxation of income from digital platforms - Parliament adopts law

The Verkhovna Rada has passed a law on the taxation of income from digital platforms.

According to the Ukrainian News agency, 241 MPs voted in favor of the decision.

The adoption of this law is a milestone in the cooperation program with the IMF.

The law takes effect in January 2027.

The document will apply to Ukrainian and foreign companies that provide digital services and operate in the Ukrainian market (including transportation, delivery, housing rental, and e-commerce services).

It also provides for the introduction of international automatic exchange of information in Ukraine in accordance with the OECD Model Rules.

The State Tax Service of Ukraine will annually receive information from the competent authorities of foreign jurisdictions regarding the income of Ukrainian residents earned through digital platforms and will transmit similar information to other countries.

The international exchange will take place after Ukraine joins the DPI Multilateral Agreement or other qualifying international agreements.

The document provides for an updated approach to the taxation of individual income earned through digital platforms.

A single payment of 10% personal income tax will be introduced, to be paid by the platform operator acting as a tax agent. Revenues from this payment will be distributed on a 50/50 basis between the general and special funds of the state budget.

Importantly, this payment will be the sole tax obligation for such income—no additional military levy will be payable.

For comparison, under current personal income tax rules, an 18% PIT rate and a 5% military levy apply, which together amount to a 23% tax burden.

The proposed model provides:

no obligation for individuals to file a tax return;

the introduction of a tax-free threshold of up to EUR 2,000 per year for the sale of goods (with no limit on the number of sales);

a reduction in the tax burden for citizens;

simplified administration through platform operators acting as tax agents;

encouraging the formalization of income.

The document also clarifies the rules for protecting information received through international exchange. Special restrictions are imposed on the State Tax Service regarding the transfer of information on income received through digital platforms to other individuals, state agencies, and local government bodies, except in cases explicitly provided for by international treaties. This will ensure a high level of confidentiality for information received through international exchange.

The draft law establishes obligations for platform operators regarding:

identifying accountable sellers;

collecting information about their income;

submitting annual reports to the State Tax Service for the purposes of international exchange;

registration of the platform operator with the State Tax Service;

acting as a tax agent for the income of individuals who are accountable sellers.

As the Ukrainian News agency earlier reported, on May 6, the Verkhovna Rada Committee on Finance, Tax and Customs Policy adopted a decision to recommend that Parliament adopt as a basis and in its entirety the revised draft law No. 15112-D on VAT taxation of e-commerce transactions, as well as to adopt in the second reading draft law No. 12360 on evaluating the effectiveness of customs authorities and implementing customs procedures for parcels.

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