The Verkhovna Rada of Ukraine was unable to pass Bill No. 14025, which proposed the implementation of international automatic exchange of information on income earned through digital platforms.
This is reported by Finway
Content of the Bill and IMF Requirements
This document was one of the key provisions in Ukraine’s cooperation program with the International Monetary Fund, and its adoption was an important condition for the continuation of funding from the IMF. The bill received only 168 votes from the members of parliament, while 229 votes were needed, preventing it from passing the parliamentary vote.
“This bill is one of the ‘beacons’ of the International Monetary Fund program for Ukraine. Accordingly, its adoption is a condition for the country to receive funding.”
Features of Taxation on Income from Digital Platforms
If the law had been adopted, the State Tax Service would have received information about the income of Ukrainians earned through international digital services such as Bolt, Glovo, OnlyFans, and others. It was also proposed to establish a tax on income earned through platforms like OLX.
Importantly, the bill did not include taxation on income from the sale of goods amounting to up to 12 minimum living wages per year (approximately 38,500 hryvnias). For income exceeding this threshold, it was proposed to introduce two personal income tax rates: a preferential rate of 5% and a general rate of 18%.
The preferential rate was to apply to individuals who use a separate bank account for income from digital platforms, do not have self-employed status, do not hire employees, do not engage in the sale of excise goods, and earn an annual income of less than 6.7 million hryvnias.