Ukrainian Parliament Supports Bill on Taxation of Income from Digital Platforms
On Wednesday, Ukraine's Parliament, known as the Verkhovna Rada, approved bill No. 15111-d, which proposes the taxation of income earned through digital platforms in its first reading. This decision marks a significant step in the framework of the International Monetary Fund's (IMF) $8.1 billion program, which includes the fulfillment of structural benchmarks.
The Verkhovna Rada, Ukraine's Parliament, took a pivotal step on Wednesday by approving bill No. 15111-d, which aims to impose taxes on income generated through digital platforms. This legislative move is seen as a crucial component of Ukraine's commitment to the International Monetary Fund (IMF) under a financial assistance program worth $8.1 billion, which requires the country to meet specific structural benchmarks.
The bill garnered support from 234 members of Parliament and will now be sent to parliamentary committees for further refinement before a second and final vote. For the bill to become law, it must pass this subsequent vote and receive the signature of President Volodymyr Zelensky.
This vote follows a failed attempt on March 10, when a similar bill (#14025) was rejected after failing to secure the necessary 226 votes. The government resubmitted the legislation as it is a structural benchmark that Ukraine committed to fulfilling by the end of March as part of the Extended Fund Facility (EFF) program with the IMF. This urgency comes just days ahead of the IMF's spring meetings in Washington, scheduled for April 13-18, where Finance Minister Serhiy Marchenko is expected to report on Ukraine's progress to Gavin Gray, the head of the IMF mission.
During the discussion of the bill, Minister Marchenko highlighted that approximately 400,000 Ukrainians, primarily couriers and drivers, earn income through platforms such as Glovo, Uklon, Bolt, and Uber, yet remain outside the tax system. "Currently, Ukraine lacks specific legislation for taxing digital platforms, which has a systemic impact on the country's economy," Marchenko stated during his address to Parliament. "The approval of this bill will allow for the legalization of self-employed citizens and provide them with official status, as well as increase budget revenues by approximately 14 billion hryvnias (around $318 million)."
According to the proposed legislation, which is set to take effect on January 1, 2027, platform operators will act as tax agents. This will be a significant step toward legalizing income earned through digital platforms and ensuring greater transparency in financial transactions, which, in turn, is expected to have a positive impact on the country's economy.