A letter from the tax office regarding content creation on OnlyFans

Over the past two months, there has been a significant increase in the number of letters from the tax authorities in Ukraine addressed to content creators on platforms such as OnlyFans, Fansly, Patreon, and similar resources. This particularly concerns income received in 2023. The tax service has begun actively analyzing the movement of funds in citizens' bank accounts, cross-border payments, and payments from international financial services. This is due to increased control over income from foreign companies and the introduction of international exchange of financial information.

Content creators often receive letters of various kinds: requests for explanations regarding income, warnings about the need to file a tax return, demands to confirm the source of funds, or notifications of a possible audit. Many get scared, thinking that "all is lost," or, conversely, hope to simply ignore the letter, expecting the problem to disappear on its own. In reality, the situation is legally regulated, but only if you act correctly and promptly.

Why do I receive such a letter?

The OnlyFans platform is owned by a company registered in the UK (Fenix ​​International Ltd), therefore payments for content are legally considered foreign income. According to Article 13 of the Tax Code of Ukraine, foreign income is subject to mandatory declaration and taxation in Ukraine. That is, the fact that a person lives in Ukraine and receives funds to their Ukrainian bank card means that they must declare this income. The tax authorities can and do see such income even without your participation.

In any case, there's no need to panic, but ignoring the letter could lead to a tax audit and penalties.

However, filing a tax return just for the sake of it can be harmful. Correctly determining the taxable base is crucial. Income from OnlyFans is not received in full: a percentage is withheld by the platform as a commission, currency conversion and exchange rate fluctuations also apply, and sometimes funds are paid out through intermediaries. Incorrect calculation can double the amount of taxes owed. That's why the first step after receiving a letter is not to rush into filing a return, but to gather documents and analyze the actual transactions.

A very common mistake is trying to delete the account or urgently reissue the card, thinking that this will "cover the tracks." In reality, the transaction history is preserved, and such actions can be considered concealment of income. Also, you shouldn't deny the fact of receiving funds if they are evident: bank information is official proof.

What taxes might be levied?

For individuals (who are not registered as sole proprietors), standard rates apply:

• Personal income tax - 18%
• Military tax - 1.5%

What should I do if I receive a letter from the tax office?

You shouldn't ignore letters from the tax office. A response must be provided within 15 business days. Don't file your tax return hastily. An incorrect tax return can increase the amount of taxes owed or trigger an audit.

Collect the documents:

1. bank statements,
2. transaction history from OnlyFans,
3. details of platform fees.

Contact a lawyer to prepare a legally correct response. A competently prepared response mitigates risks, reduces the tax base, and prevents penalties.

What won't help and could make the situation worse?

• Deleting an account does not cancel income from previous periods.
• Urgent changes to bank or card details look like tax evasion.
• Denying the fact of income when transactions exist is pointless – the tax authorities have access to the data.

Regarding "criminal liability under Article 301 of the Criminal Code of Ukraine"

Particular attention should be paid to the issue of scare tactics regarding criminal liability under Article 301 of the Criminal Code of Ukraine ("Production, sale and distribution of pornographic materials"). Some consultants deliberately escalate the situation, convincing content creators that the tax authorities allegedly automatically transfer their materials to the police. In reality, this is not true. Filing a tax return or paying taxes does not automatically lead to criminal liability.

Article 301 applies only if three conditions are proven: intent to distribute materials of a pornographic nature, a state expert opinion confirming the content as pornographic, and the fact of open access to an indefinite number of people. Platforms like OnlyFans and Fansly, where access to content is paid for and within a closed audience, do not fall under the criterion of "distribution to an indefinite number of people." Therefore, in the vast majority of cases, the issue is exclusively about tax matters, not criminal ones.

A case on OnlyFans from my practice

The client received a request for income information from OnlyFans for 2023. The State Tax Service calculated over 52,000 UAH in tax liabilities, without taking into account commissions and exchange rates.

The actions I have taken

• A reasoned written response has been prepared for the State Tax Service explaining the source of income, the specifics of receiving funds through an international platform, and the legitimacy of accounting for commission expenses.
• Documentary evidence of expenses has been provided, including:

- bank account statements;

- OnlyFans reports with detailed transaction information;

- information about service fees and the official exchange rates of the National Bank of Ukraine on the dates the funds were credited.

• The tax base was adjusted by calculating net income after deducting commission fees and taking into account the actual exchange rates. Based on this, an amended tax return was prepared with reduced tax liabilities.

Result: liabilities reduced by 47%, penalties completely waived.

A letter from the tax authorities is not a death sentence and no reason to panic. It's an issue that needs to be, and can be, resolved legally and competently. If you receive such a letter, don't face the problem alone.

Fill out the form on our website and our lawyer will contact you for an initial consultation. We have practical experience in disputes with the tax authorities, so we have effective arguments to protect your interests.