Gov’t planning to introduce new per-performance tax for artists and entertainers

Starting from September 1, 2026, the new system mandates that all creative services be registered through the Soliq mobile application. Performers will be required to pay a fixed tax for each service rendered directly through the app. Until January 1, 2029, this tax will follow a "one service – one payment" principle, where a fixed amount is charged regardless of the performer's actual income for that specific event. The exact payment size will be determined based on the performer's professional category and geographic region. Notably, the tax must be paid even for services provided free of charge, with the only exception being participation in official state events.

Once a service is registered and the tax is paid, the system will automatically generate an electronic document confirming the event. Looking further ahead, the government plans to transition to a value-based system in 2029. Under that phase, taxes will be calculated based on the contract value, provided it does not fall below a set minimum threshold. To facilitate these processes, the Soliq app will be upgraded to include features for online contract registration, event booking, price list publication, and market price tracking.

The draft document also outlines several tax concessions to balance the new requirements. Performers will be permitted to deduct up to 30% of their annual income as expenses without providing supporting documentation. If actual expenses exceed this limit, an additional 10% may be deducted. Furthermore, social security payments and state duties will be counted as deductible expenses.

To ensure compliance, the government has established strict penalties for failing to register services or pay the required tax, which will be classified as tax evasion. Violators face a fine equivalent to 20% of the average contract value, but no less than 20 times the Base Calculating Amount (BCA). In an effort to enhance oversight, whistleblowers who report such tax violations will be eligible for a reward totaling 20% of the collected fine.