Tax on income from OLX and Prom: Hetmantsev named the "benefits" of the bill

Tax on income from OLX and Prom: Hetmantsev named the "benefits" of the bill

The bill on taxing sales on digital platforms will "reduce" the former tax rate. The Rada promises not to require taxes on the sale of personal items.

The Cabinet of Ministers of Ukraine has submitted a bill to the Verkhovna Rada, according to which digital platforms will withhold tax from users who provide services or sell goods. The document will reduce the current tax rate from 18% to 5%, stated the head of the Rada’s Finance, Tax and Customs Policy Committee, Danylo Hetmantsev.

The introduction of the bill is related to the terms of the memorandum between Ukraine and the International Monetary Fund. Before the bill is adopted, Hetmantsev noted, a public and transparent discussion will be conducted.

In Ukrainian legislation, according to the politician, there is an old existing norm under which transactions involving the sale of any property are taxed at the general PIT rate. He mentioned a "draconian norm that was introduced into the Tax Code long ago."

"It’s just that nobody mentioned it. Nobody wants to admit that it was their doing. We will not allow any decision that would lead to the taxation of personal item sales," he added.

Hetmantsev noted that the profile committee of the VRU in this matter has "stood up for the protection of the people." Consultations, opinion gathering, and discussions are ongoing, but the "principled position" remains.