On April 29, members of Diia.City United met with Ruslan Kravchenko, Head of the State Tax Service of Ukraine, and his team as part of the Diia.City United Dialogues with the Government series.

We thank everyone who found the opportunity to personally join this important discussion!

The participants met with the heads of various departments within the State Tax Service, all of whom are ready to continue our dialogue more substantively. We are now in constant contact!

Key Agreements Achieved

  • Answers to Questions: All questions from the Association members, collected in advance, were submitted to the STS. Each participant will receive a written response individually.
  • Regular Dialogue: We agreed to meet with representatives of the State Tax Service once every two weeks to promptly resolve systemic and specific business issues.
  • Joint Work on Amendments: We agreed to work jointly on necessary legislative changes – particularly regarding the taxation of paid breaks for gig specialists.
  • Working Group on Virtual Assets: A joint working group with the STS is being created for detailed analysis and refinement of the draft law on virtual assets between parliamentary readings.
  • Expert Assistance with E-Audit: At the request of the Head of the STS we are forming a team of experts to assist in the testing and checking of the E-Audit digital platform, developed at the request of the EU. Details of this cooperation will be announced later.
  • Solving the Problem with Form 4D: The STS is preparing an appeal to the Ministry of Finance to resolve the issue with the adjustment of the average number of employees in the Form 4D report. This will remove an unnecessary headache for businesses.

We thank the State Tax Service team and its head, Ruslan Kravchenko, for their openness to dialogue, initiative, and human approach.

Points of Discussion Briefly 

The discussion was dynamic and productive. During the meeting, we delved deeper into the issues that concern the majority of Diia.City residents and that our lawyers most frequently receive. Thus, we found out the position of the State Tax Service on the most critical aspects for the technology business.

  • Paid Breaks for Gig Specialists: The STS confirmed that the current tax rate of 18% applies to such payments, and legislative amendments are required to change it.
  • Taxation of Virtual Assets: The STS supports the draft law, seeing its potential for additional budget revenues, but agrees on the need for its revision, especially regarding tax amnesty.
  • Digital Platforms Taxation: The bill stipulates the function of tax agents for digital platforms. The STS believes this aligns with European standards but requires a clearer definition of the rules. The draft law does not contain provisions for automatic STS access to banking secrecy. The STS believes partial access is necessary, but suggests to entrust the analysis of sensitive information to artificial intelligence.
  • Taxation of Electronic Services of Non-Residents: Currently, 140 non-residential electronic services providers are registered. The STS is working on expanding the taxpayer base by identifying unregistered companies through monitoring open sources and international information exchange. Penalties are applied only for untimely report submission or tax payment. No court cases in this category have been recorded so far.
  • Interaction between the State Tax Service and the Pension Fund: Information exchange between the agencies is automatic and prompt. Data appears in the Pension Fund register after the payer receives the second receipt. There is a possibility of accelerated data update through the Pension Fund’s insured person’s account, which is important for booking procedures.

We felt a real willingness to hear us and work jointly on solutions. More details about further regular group-work with the State Tax Service — coming soon. Let’s find balance together!

 

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* At our closed meetings in the Dialogues with the Government format, we continue establishing direct interaction between Diia.City United members and key government institutions: we exchange current information, agree on initiatives, and define areas of cooperation. We work together on a transparent regulatory environment and strengthen the collective voice of the technology business.

** Want to have access to such exclusive events? Join Diia.City United — the largest Association of product technology companies! You will receive all unique opportunities available only to members of our business community: quality networking, exchange of valuable contacts, joint protection and advocacy of your business interests, as well as more ways for development and growth.

Wanna learn more on how to join? Email us at members@diiacityunited.ua