Uklon and Uber taxi drivers have to pay 18% of personal income tax

Uklon and Uber taxi drivers are obliged to pay income taxes

Taxi drivers who work through services Uklon and Uber, are obliged to pay taxes on income received, In particular 18% personal income tax (PIT). This was stated by the head of State Tax Service of Ukraine Lesya Karnaukh.

What is changing

According to her, taxation of income of online platform drivers is part of a systematic approach taxation of all users of digital services - not only taxis, but also marketplaces and classifieds.

We are talking about the income that individuals receive through digital platforms, regardless of the form of cooperation with them.

Legislative context

The introduction of these norms is envisaged:

• Ukraine's obligations to European Union;

• agreements with International Monetary Fund.

The relevant legislation is unofficially called «the OLX law» - It should regulate the taxation of income received through digital platforms and online services.

Position of the State Tax Service

The Tax Service emphasises that the purpose of the new rules is to Unify the tax approach and bring out of the shadows income that was often undeclared before.

It is expected that after the adoption of the law, platforms may be obliged to transfer information about users' income to the tax authorities.