The Ukrainian government approved a draft law introducing new rules for reporting and exchanging information on income earned through digital platforms on 29 April 2025.

The proposed measures align with the OECD Model Rules and the EU’s DAC7 Directive, and information exchange will be facilitated under the Multilateral Competent Authority Agreement (DPI-MCAA).

The DPI-MCAA provides a multilateral framework for the automatic exchange of information, avoiding the need for multiple bilateral agreements. As a framework agreement, it ensures each signatory retains control over exchange relationships and applies national standards for confidentiality, data protection, and appropriate use of information.

DAC7, formally Council Directive (EU) 2021/514, took effect on 1 January 2023, with the first exchange of information for the 2023 calendar year occurring in February 2024. The Directive sets out rules for administrative cooperation between EU tax authorities and procedures for sharing tax-related data.

Digital platform operators in the European Union are required to comply with the EU Council Directive on Administrative Cooperation in the Field of Taxation – DAC 7, which means reporting the income of sellers using their services. Ukraine is preparing to join the Multilateral Competent Authority Agreement on Automatic Exchange of Information on Income Earned Through Digital Platforms (DPI MCAA), which is already operational in 29 countries, mostly EU members. For this, the implementation of OECD model rules is required.

The Ukrainian government is focused on simplifying individuals’ interaction with the State Tax Service regarding the declaration and payment of taxes on income earned from selling goods or providing services through digital platforms. The draft law introduces a preferential personal income tax (PIT) rate of 5%. Platform operators are designated as tax agents.

The draft law also proposes a simplified tax regime for individuals earning income via digital platforms. Under this system, platform operators would withhold a 5% personal income tax. To qualify, individuals must not be self-employed or employ others, must not sell excisable goods, and must have annual sales below UAH 6.7 million. A 5% military tax may also apply, although this is not explicitly addressed in the draft.