The Verkhovna Rada has published the Law on Taxation of Income from Digital Platforms, implementing OECD/G20 BEPS recommendations for the digital economy. The legislation defines “digital platform operators” and establishes withholding obligations for income earned by non-resident sellers. Key provisions enter into force on 1 January 2027, with registration and reporting requirements starting 1 October 2026. The law aligns Ukraine with EU Directive DAC7 and introduces a 15% withholding tax on gross remittances to non-residents unless a tax treaty provides relief.
Key Takeaways
- Scope Expansion: Covers ride-hailing, accommodation sharing, freelance marketplaces, and e-commerce platforms facilitating sales by non-residents.
- Compliance Timeline: Platform operators must register with STS by 1 October 2026 and begin monthly reporting from January 2027.
- Treaty Benefits: Non-resident sellers can claim reduced rates by providing a tax residency certificate before payment.
Disclaimer: This article is compiled and summarized by the AI based on publicly available information and is for general information purposes only. It does not constitute any form of formal tax advice, legal opinion, or basis for performance. Please consult a qualified professional tax advisor or legal counsel for tax advice.
Source: Read Official Announcement