The Ukrainian Ministry of Finance has released a series of tax bills aligned with a new four-year program with the International Monetary Fund (IMF). The proposed legislation aims to address various taxation issues and is now available on the ministry’s official website.
One significant change involves the elimination of existing tax exemptions for international packages valued under 150 euros. Under the new proposal, only packages worth less than 45 euros will be exempt from VAT and customs duties.
Another key aspect of the legislation is the introduction of a tax framework for digital platforms such as OLX, Uklon, Bolt, Uber, and Glovo. While current Ukrainian law mandates tax payments from individuals using these services, the tax authority lacks data on their earnings. The new bill seeks to simplify the tax process by requiring users to open a special bank account for income received from these platforms.
The personal income tax rate is set to decrease to 5% from the current 18%, with an additional military levy bringing the total to 10%. Individuals earning less than 2,000 euros annually will be exempt from this tax. Additionally, digital platforms will be required to identify sellers and report their earnings annually by January 31.
Starting January 1, 2027, individual entrepreneurs with annual incomes exceeding 4 million hryvnias will need to register as VAT payers.
The military tax for individuals is proposed to remain at 5%, while for individual entrepreneurs in the first, second, and fourth groups, a fixed rate of 10% of the minimum wage will apply, and for the third group, it will be 1% of income. These fixed payments will continue until the reform of the Armed Forces of Ukraine is completed, rather than until the end of martial law.
Danilo Hetmantsev, head of the parliamentary finance committee, expressed skepticism regarding the approval of these proposed changes. He noted a timeline of events leading up to the current situation, stating, “In February 2026, the Prime Minister indicated that the bill would not be introduced. By the end of February, a memorandum with the IMF was signed, requiring the tax bill to be fully adopted by the end of March. Yet, as of March 20, the bill had not even been presented for parliamentary consideration, generating further debate and criticism.”
Hetmantsev raised concerns about the legislative process, questioning, “Even setting aside our deep political crisis, what are the chances of supporting any legislative initiative in parliament that has faced such turmoil and drama within the government?”
In November 2025, Ukraine and the IMF agreed on parameters for a new four-year extended funding program worth $8.1 billion. This program includes 16 structural benchmarks that the government and parliament must fulfill, along with four mandatory prior conditions that must be met for the program to commence.
In December 2025, the Ministry of Finance proposed a draft bill requiring individual entrepreneurs with annual incomes exceeding 1 million hryvnias to pay VAT. Following public backlash, the ministry began working on a revised version that would raise the threshold to either 2 million or 4 million hryvnias per year, as reported by David Arakhamia, head of the “Servant of the People” faction.
On February 14, Prime Minister Yulia Svyrydenko announced that the IMF had agreed to waive prior conditions for the new credit program, which includes the VAT requirement for individual entrepreneurs, customs duties on packages, taxes for digital platforms, and the continuation of the military tax.
On February 27, the IMF approved the new extended funding program for Ukraine, designed to last four years and provide $8.1 billion to help cover the country’s budget deficit.
On March 3, Ukraine received the first tranche of $1.5 billion under the new program through the Extended Fund Facility (EFF). However, on March 10, the Verkhovna Rada failed to pass the tax bill related to income from digital platforms, which is one of the IMF’s requirements. The parliament must approve several measures to secure macro-financial assistance.
Concerns have been raised regarding the potential loss of IMF funding due to the ongoing parliamentary crisis.
Ukraine's Ministry of Finance has introduced new tax legislation as part of its agreement with the IMF. The proposed changes aim to reform taxation on digital platforms and international packages, but skepticism remains about parliamentary approval amid political instability.