 Ukraine has adopted in the first reading draft law No. 15111-d on the taxation of income earned through digital platforms, introducing a DAC7-aligned reporting and tax framework with automatic exchange of information, preferential rates for eligible income, and new compliance obligations for platform operators.
The Ukrainian parliament, the Verkhovna Rada of Ukraine, has adopted in the first reading draft law No. 15111-d on the taxation of income earned by individuals through digital platforms, as the legislation moves towards a second reading.
The draft law establishes a framework for the automatic exchange of information on income generated via digital platforms, aligning Ukrainian legislation with OECD Model Rules and EU Directive 2021/514 (DAC7). It is also intended to support Ukraine’s commitments to the IMF, OECD and EU by strengthening tax transparency in the digital economy.
Tax rates and thresholds
A preferential tax rate of 5% will apply to income earned through digital platforms, provided total annual income does not exceed 834 times the minimum wage as of 1 January of the reporting year.
If income exceeds this threshold, the excess will be taxed at the standard rate under paragraph 167.1 of the Tax Code.
Income from the sale of goods via digital platforms will be exempt where it does not exceed EUR 2,000 per calendar year. If the threshold is exceeded, tax will be withheld on the amount above EUR 2,000.
Digital platforms as tax agents
Digital platform operators will be treated as tax agents responsible for calculating, withholding and remitting taxes on behalf of sellers.
They will be required to make monthly payments to the budget, while non-resident operators may settle liabilities in foreign currency (EUR or USD) via a designated currency account.
Operators must submit an annual simplified tax report by 31 January through a dedicated portal.
Conditions for sellers
To qualify for the preferential regime, sellers must be Ukrainian tax residents, use designated bank accounts for transactions, and not employ staff for their platform-based activities.
Self-employed persons (FOPs) may apply the 5% rate only where their platform activity differs from their officially registered business activities.
Compliance and enforcement
All reporting platform operators must register with the tax authorities. Failure to register will attract a penalty of 20 times the minimum wage.
Ukraine will also participate in the Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Derived Through Digital Platforms (DPI MCAA). Operators will be required to conduct due diligence to identify reportable sellers and share relevant data with tax authorities.
The draft law also states that relationships between platform operators and sellers providing personal services will not be treated as employment relationships under the Labour Code, provided the operator is registered with the tax authorities.
Penalties for non-compliance include:
- Failure to submit reports: 100 times the minimum wage
- Late submission: 0.5 times the minimum wage per day
- Inaccurate or incomplete data: 0.5 times the minimum wage per seller
Implementation timeline
Registration requirements for platform operators will take effect from 1 November 2026.
Most tax and reporting provisions, including the 5% preferential rate, will apply from 1 January 2027.
The first reporting period under the exchange of information framework will cover the 2027 calendar year, with reports due in early 2028.
Additional measure
The draft law also introduces land tax relief. From 1 January 2026, land tax and rent for state or communal land will not be charged for plots where real estate has been destroyed due to the armed aggression of the Russian Federation, provided the destruction is recorded in the official state registry.
