How Taxation Works
When you earn on our platform, taxes are handled differently depending on your registration status. For Ukrainian individuals without FOP registration, the platform acts as a tax agent — we withhold taxes automatically and remit them to the tax authorities on your behalf.
Tax Rate for Non-Registered Individuals
Withheld automatically at payout — you receive the net amount.
Tax Breakdown
18% Personal Income Tax (PIT)
The Personal Income Tax (PIT) rate of 18% is applied to your earnings. This is a standard tax for income earned by individuals in Ukraine.
5% Military Levy
A 5% military levy is applied to support the defense needs of Ukraine. This is mandatory for all income earned by Ukrainian residents.
Example: How a $100 Payout Works
Tax by Registration Type
Individual (Not Registered as FOP)
- Platform acts as your tax agent — tax withheld automatically
- 23% total tax (18% PIT + 5% military levy) withheld at payout
- No need to file quarterly tax declarations — we handle it
- Funds held in escrow until order completion, then paid out after holding period
Registered Entrepreneur (FOP)
- You manage your own taxes — no automatic withholding
- FOP Group 3 rate: 6% (5% single tax + 1% military) — you file and pay yourself
- Receive full payout amounts — taxes are your responsibility
- Connect Monobank for instant split payments
Frequently Asked Questions
Why does the platform withhold taxes?
As a tax agent under Ukrainian law, the platform is required to withhold Personal Income Tax (PIT) and military levy from income paid to individuals who are not registered as entrepreneurs. This ensures compliance with tax regulations and simplifies the process for you — no need to file and pay these taxes yourself.
Can I avoid tax withholding by registering as a FOP?
Yes. If you register as a private entrepreneur (FOP) and update your registration status in your profile settings, the platform will no longer withhold taxes automatically. You will be responsible for filing and paying your own taxes at the applicable FOP rate (e.g., 6% for FOP Group 3).
What if I'm not a Ukrainian resident?
If you are not a Ukrainian tax resident, different tax rules may apply. We recommend consulting with a tax professional in your country of residence to understand your tax obligations. The platform does not automatically withhold taxes for non-residents.
Do I get a tax certificate or receipt?
Yes. You can view your payout history and tax withholding details in your account dashboard. For official tax reporting, you can download a summary of all transactions and withholdings for the tax year.
When is tax withheld — at payment or at payout?
Tax is withheld at the time of payout, after the order is completed and the holding period ends. The full order amount is held in escrow until you complete the work and the client approves it. After the holding period, taxes are deducted and the net amount is sent to you.
How do I update my registration status?
Log in to your account, go to your Bank Credentials settings, and select your registration status (FOP or Individual). This determines how your payments are processed and whether taxes are withheld automatically.
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