Digital platforms play a key role in economic development, creating new forms of employment and service provision, and also become a source of income for millions of users. At the same time, taxing these incomes raises many questions.
This was emphasized by the representative of the Youth Committee of the National Bar Association of Ukraine – UNBA NextGen in the Odessa region Ivanna Blokhina, opening a panel discussion on the topic “Features of taxing legal activities: forms of legal activities, tax payments, single social contribution. Taxation of digital platforms.” Therefore, the event organizer proposed to experts and participants to discuss the challenges arising in tax systems related to the digitalization of the economy.
Member of the Tax Law Committee of the Odessa Regional Bar Council Mykola Portnyi spoke about fiscal transformation and legal risks of digital platforms and cryptocurrency.
He analyzed bills No. 10225-d on taxing cryptocurrencies and No. 13232 on the obligation of digital platforms to provide data to the tax authorities, signaling that the state is taking a course towards total control over incomes from digital sources.
“Significant changes in tax regulation are ahead,” warns the expert. “And regardless of whether the simplified tax system will be abolished, a substantial reduction in trading volumes on digital platforms is expected. Many individuals, fearing fiscal pressure, will simply abandon transparent sales channels. The question remains open – how funds will be transferred in the new conditions. If the mechanism is not properly regulated, this may lead to a return to semi-formal payment methods – cash transfers, “conductors,” goods shipments without actual contract formalization, and so on.”.
Since direct cryptocurrency settlements are prohibited in Ukraine and not all cryptocurrencies will be allowed in circulation, M. Portnyi gave some advice on work. In particular, it is not advisable to use P2P as the only channel for depositing funds, as there is no tax credit. It is necessary to keep records of how much was deposited, at what NBU rate, and what operations were carried out (cryptocurrency exchange between wallets is also a tax risk if there are no confirmed expenses).
Another discussion block was presented by the representative of the Youth Committee of the National Bar Association of Ukraine – UNBA NextGen in the Odessa region Yulia Honcharenko. She noted that taxing legal activities has its peculiarities depending on the organizational and legal forms of legal activities and proposed to consider issues related to filing declarations, reports in case of different forms of legal activities, as well as to pay special attention to taxation during martial law.
This topic was disclosed by an accountant with fifteen years of experience in supporting small and medium-sized businesses Hanna Pasiaka.
She talked about the peculiarities of taxing different forms of legal activities: as a self-employed person, in the form of a law firm or a lawyers’ association, and also thoroughly examined the issue of paying single social contribution, reporting procedures, and responsibilities.