Ukraine’s parliament, the Verkhovna Rada, approved draft law #15111-d to tax income earned through digital platforms in its first reading on Wednesday.
The bill is a structural benchmark under Ukraine’s $8.1 billion Extended Fund Facility (EFF) program with the International Monetary Fund (IMF).
It received 234 votes from lawmakers, and now moves to parliamentary committees for refinement before a second and final vote. To become law, the bill must pass a second vote and be signed by President Volodymyr Zelensky.
The vote follows a failed attempt on March 10, when parliament rejected a similar bill (#14025) that fell short of the required 226 votes. The government resubmitted the legislation, as it is a structural benchmark Ukraine was obliged to fulfill by the end of March under the EFF program with the IMF. The push comes just days before the IMF’s spring meetings in Washington on April 13-18, where Finance Minister Serhiy Marchenko is scheduled to report on Ukraine’s progress to Gavin Grey, IMF Mission Chief.
During the discussion of the bill, he noted that approximately 400,000 Ukrainians, primarily couriers and drivers, earn income through platforms like Glovo, Uklon, Bolt, and Uber, but remain outside the tax field.
“Currently, Ukraine lacks special legislation for taxing digital platforms, which has a systemic impact on the country’s economy,” Marchenko said during the speech in parliament. “The approval of the bill will allow for the legalization of self-employed citizens, and give them official status while increasing budget revenues by approximately Hr. 14 billion [$318 million],” Marchenko added.
Under the proposed legislation, which is slated to take effect on Jan. 1, 2027, platform operators will act as tax agents. They will be required to identify users and report their annual earnings from the sale of goods, the provision of services, and the rental of real estate or vehicles to the State Tax Service. This aligns national law with EU (DAC7) and Organization for Economic Co-operation and Development (OECD) standards for the automatic exchange of information.
The bill introduces a simplified tax regime for individuals, replacing the current 18% personal income tax with a 5% rate, but for individuals without hired employees whose annual income does not exceed 834 minimum wages (approx. Hr.7.2 million or $163,600 in 2026). It also includes small sellers’ exemption – income from the sale of goods under €2,000 ($2344) per year will not be taxed.
While the digital platform bill and the previously secured extension of the military levy mark significant progress, the final tax benchmarks remain. Parliament is still expected to consider a bill introducing VAT on international parcels valued under €150 ($170), which is already under consideration by the council, and a bill on VAT for sole proprietors, which the government is still working on.