News

J&L Consulting Newsletter – April 14, 2025

·       Ukraine Proposes Tax Reporting for Online Platform Sellers

·       Ukraine Proposes Crypto Taxation Framework Based on Global Practices

·       Ukraine Updates Criteria for Strategic Agricultural Enterprises

 Ukraine Proposes Tax Reporting for Online Platform Sellers

The Ministry of Finance has released a draft law introducing mandatory income reporting for individuals earning through digital platforms. Aligned with Ukraine’s commitments to the OECD and EU, the initiative aims to implement an international automatic exchange of information on platform-based earnings. The proposed legislation introduces a 5% tax rate for qualifying resident sellers and designates platform operators as tax agents responsible for withholding and remitting taxes to the state.

To qualify for this preferential tax regime, individuals must meet strict criteria: be at least 18, operate via a dedicated bank account, limit transactions to monetary forms, avoid using hired labor, and keep annual income below ₴5 million. Excluded are self-employed persons, sellers of excisable goods, and those under financial sanctions.

Platform operators must report transaction data to the State Tax Service (DPS), which will gain access to account activity for compliance verification. Banks are required to share account details upon official request. The law aims to close loopholes and prevent abuse of tax benefits, focusing only on professional, systematic sales rather than casual, personal item exchanges.

This reform introduces a new article to the Tax Code and supports broader goals under Ukraine’s IMF memorandum and National Revenue Strategy. Its implementation would significantly strengthen oversight of e-commerce activity while preserving simplified tax benefits for compliant individuals.

Ukraine Proposes Crypto Taxation Framework Based on Global Practices

The National Securities and Stock Market Commission (NSSMC) has developed a proposed matrix outlining taxation options for various crypto operations in Ukraine—from mining and staking to airdrops. Inspired by models in Germany, Switzerland, Estonia, and Singapore, the framework distinguishes between two primary tax bases: net income (income minus expenses) and gross revenue.

Under the net income model, tax is levied on actual gains, suitable for volatile or stablecoins. However, its complexity may hinder enforcement due to difficulties in tracking costs and risks of loss manipulation. The gross revenue model simplifies administration—tax applies only when crypto is converted to fiat—but can overburden users transacting with high-volatility tokens.

The income recognition moment may follow either the EU-style rule (when assets are exchanged or received for goods/services) or apply only upon conversion to fiat or non-digital assets.

Tax rates:

• Standard: 18% personal income tax + 1.5% military levy
• Proposed preferential: 5% or 9%

Exemptions may apply for intra-wallet transfers, donations, or gifts—particularly within families.

The matrix also outlines preliminary tax treatment for mining, staking, forks, and airdrops, signaling Ukraine's step toward a structured regulatory environment for digital assets.

Ukraine Updates Criteria for Strategic Agricultural Enterprises

On April 3, 2025, the Ministry of Agrarian Policy of Ukraine issued Order No. 1588, amending the criteria for designating agricultural enterprises as critical to the national economy during special periods.

The update introduces a new criterion: an enterprise qualifies as strategically important if it owns at least 90% of the charter capital of two or more entities already recognized as critical for economic function and population sustenance during special periods. Confirmation requires submission of a copy of the relevant ministerial order.

The order was registered with the Ministry of Justice on April 9, 2025 (No. 548/43954), and takes effect upon official publication.