The government is scheduled to submit a bill to the Verkhovna Rada in April that will contain new approaches to taxing digital platforms like Uklon, Bolt, or Glovo. What is known about the bill and whether the services agree with this approach?
The government is scheduled to submit a bill to the Verkhovna Rada in April that will contain new approaches to taxing digital platforms like Uklon, Bolt, or Glovo. What is known about the bill and whether the services agree with this approach?
«Taxing digital services could bring in an estimated UAH 10 billion per year to the budget,» Forbes writes, citing the words of the head of the Finance Committee, Danylo Hetmantsev. According to him, these are rough calculations. «However, the situation could be like with the tax on Google, when they initially targeted UAH 3 billion, and as a result received over UAH 11 billion in taxes,» he adds.
The chairman of the Finance Committee reported that for digital platforms, the working group working on the bill is considering a reduced tax rate of 5% of income. However, according to Hetmantsev, the main discussions concern the taxation process itself.
The press service of the Ministry of Finance did not inform, as Forbes writes, how taxes will be levied on income from digital platforms. Two options are being considered:
The ministry noted that companies must submit annual reports on the income of platform employees.
According to responses from Uklon, Bolt, and Glovo cited by Forbes, the services support taxation for the digital platform market. Bolt’s public policy chief Yulia Malich believes a 5% rate is fair.
