Ukraine’s Parliament Approves 10% Tax on Digital Platforms Like Bolt, Uklon, and Glovo

New Legislation Targets Income from Digital Platforms

According to ХВИЛЯ: Ukraine’s parliament, the Verkhovna Rada, has passed a bill introducing a tax on income earned by Ukrainians through digital platforms, including services such as Bolt, Uklon, Glovo, Uber, and Airbnb. The legislation received support from 241 lawmakers during its second reading and fulfills one of Ukraine’s commitments to the International Monetary Fund. Under the approved document, the personal income tax rate is set at 10%, with no separate military levy required.

Implementation Timeline and Outlook

The tax system is scheduled to launch no earlier than January 2027, with full operational mechanisms expected closer to 2028.

“This was an IMF benchmark. But overall, the final text turned out to be very sensible, and it was supported by all business associations.” - Yaroslav Zheleznyak

He added, “By the time all memorandums are signed and the exchange system is up and running, it will only start working closer to 2028.”

The adoption of this bill marks a significant step toward regulating income from digital platforms in Ukraine, reflecting the country’s obligations to international creditors and the need to adapt to evolving economic realities. The new tax framework aims not only to generate budget revenue but also to create transparency for businesses operating in the digital economy and for consumers. This could have a substantial impact on the growth of innovative services and help improve Ukraine’s investment climate.

As Ukraine moves forward with its new tax regulations, the support from the business community plays a crucial role in shaping the future landscape of digital platform taxation. Understanding the implications of this legislation can provide valuable insights into how these changes may influence both businesses and consumers in the digital economy.