New rules for OLX and Prom. The opposition cites excessive fiscal pressure
23 March 19:34
Nina Yuzhanina, a member of parliament from the European Solidarity faction, stated that the Ukrainian government is manipulating the issue of taxing income from digital platforms—often referred to in public discourse as the “OLX tax”—according to "Komersant Ukrainian".
According to her, the initiatives of the Ministry of Finance of Ukraine go beyond the requirements of international regulations.
What the MP says
According to Nina Yuzhanina, the international rules that Ukraine is required to implement pertain solely to the exchange of information regarding platform users’ income.
These are the standards of the Organization for Economic Cooperation and Development (OECD).
According to her:
- these rules do not set tax rates;
- do not establish tax administration procedures;
- do not oblige countries to introduce additional control mechanisms.
Instead, the MP asserts, the proposals from the Ministry of Finance of Ukraine call for a much stricter approach.
What changes are being proposed
According to Yuzhanina, the proposed model could introduce a new system for monitoring citizens’ income earned through online platforms.
Specifically, this involves:
- opening a separate bank account for transactions via digital platforms;
- abolishing bank secrecy for such accounts;
- the transfer of information on all transactions and counterparties to tax authorities;
- mandatory registration of accounts with the tax service;
- filing an annual tax return if income exceeds 2,000 euros and two or more platforms are used.
Among the platforms mentioned in the discussion:
- OLX
- Prom.ua.
What tax rates may apply
According to the MP, the following rates are being discussed:
If the account is registered:
- 5% personal income tax 5% military levy — for income up to 7.2 million UAH;
- 18% personal income tax (PIT) 5% military levy — for income exceeding 7.2 million UAH.
If the account is not registered:
- 18% personal income tax 5% military levy from the first hryvnia.
At the same time, an exception is proposed: income of up to 2,000 euros per year from the sale of goods may be exempt from taxation.
For services, according to Yuzhanina, taxation is proposed starting from the first hryvnia.
What this means for sole proprietors and the self-employed
The greatest risks, in the MP’s view, may arise for entrepreneurs and the self-employed.
The issue is that income generated through digital platforms may:
- be automatically classified as business income;
- or be taxed at a rate of 18% personal income tax and 5% military levy.
According to Yuzhanina, this could even apply to cases where a person sells their own used items online.
Political debate
Nina Yuzhanina believes that such initiatives could:
- complicate the operations of small businesses;
- discourage people from working officially;
- contribute to the shift of some activities into the shadow economy.
In particular, she says, this is risky in wartime, when many small businesses are already operating on the brink of survival.
