Digital platforms such as Uklon, Uber and Bolt can obtain the status of tax agents, which will allow them to automatically withhold taxes from users’ incomes and transfer them to the state budget. About this stated Chairman of the Parliamentary Committee on Finance, Tax and Customs Policy, Danylo Hetmantsev.
“It is better for administration by the state, it is easier for people, because a person will receive income already after deducting the tax, which will be withheld by the platform and paid to the state budget. Therefore, I am a supporter of such an approach that the platform is a tax agent.” Hetmantsev noted.
He said he was proposing to introduce a reduced tax rate of 5% on such income, citing OECD recommendations. The Ministry of Finance previously proposed a model in which the platforms would transmit data about users’ incomes to the State Tax Service, and citizens themselves would have to submit declarations and pay taxes.
“This implies the obligation for hundreds of thousands of our fellow citizens to submit these declarations“, the chairman of the Committee noted.
Hetmantsev also clarified that users registered as sole proprietors will continue to pay taxes on their own, as different taxation rules will apply to them.
