Taxi Fares in Ukraine May Rise Significantly: The Main Reasons
4 August 15:12
Ukrainian taxi services are preparing for major tax changes. On June 9, the Verkhovna Rada passed Bill No. 15111-d, which requires digital platforms to act as tax agents for their contractor partners. This primarily affects drivers for Uklon, Bolt, and other ride-hailing platforms, according to [Komersant].
The law provides for a special 10% personal income tax (PIT) rate on income earned through digital platforms. The 5% military surtax will not be levied in this case. For comparison: under the general taxation system, the PIT rate is 18% plus a 5% military surtax—for a total of 23%. Thus, nominally, the new special regime is lower.
How the New System Will Work
The main change is that platforms will independently calculate, withhold, and pay tax on drivers’ earnings. This means that Uklon and Bolt will need to adapt their IT systems, verify the status of their partners, and file reports with the tax authority. The Ministry of Finance plans to implement the new rules starting in early 2027.
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Drivers who are sole proprietors and confirm their status with the platform will remain under the usual tax system—without automatic tax withholding by the aggregator. However, for those who worked as ordinary individuals without registration, tax will be withheld automatically.
What Will Happen to Taxi Fares
Transportation expert Dmytro Bespalov links a possible revision of fares to the additional burden on digital services, writes UkrainianWall. According to him, platforms will have to incur costs for software updates, document verification, and tax administration. These costs could be distributed among the platform’s own margin, the commission charged to drivers, and the final fare for the passenger.
Price increases for customers are one possible scenario, not an automatic consequence of the 10% tax rate. Much will depend on competition in a particular city and the platforms’ own strategies. At the same time, for drivers who previously paid no taxes at all, the automatic withholding will mean an actual reduction in their net income.
How Drivers Can Prepare Now
Those who work through Uklon or Bolt should determine their status today. If you’re a sole proprietor, make sure you can verify your registration with the platform. If you’re working without formal registration—keep in mind that starting in 2027, 10% of your income will automatically go toward taxes. At the same time, this will legalize your earnings and grant you access to social benefits.
Separately, Ukraine is discussing a comprehensive reform of the taxi market: the status of self-employed motor carriers, mandatory insurance for drivers and passengers, and new pricing rules. This is a separate area of regulation that should not be confused with the taxation of digital platforms.
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