Ukraine has finally approved a "historic" tax increase. Find out when the changes will take effect, who will be affected, and how much you will have to pay
The President of Ukraine signed the Law on Amendments to the Tax Code to Finance the Defense Forces and Ensure Financial Stability. We will tell you about the main changes for Ukrainians later in the material.
When will the new tax law come into force?
Law No. 4015 will come into force on the day following its publication, that is, December 1, 2024, as it is expected to be published in the newspaper "Holos Ukrainy" on November 30.
However, not all changes will come into force on December 1. For example, changes in the deadlines for submitting personal income tax reports and some other regulations will come into force on January 1, 2025.
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Key changes to the tax law and new amounts of fees
According to the updated rules, the following changes are provided for:
1. Change in the military tax rate for individuals on wages, income from bank deposits, real estate rental, winnings and other income. The amount of the military levy increases from 1.5% to 5% and comes into force on December 1, 2024.
2. For individual entrepreneurs (IEPs) of the first, second and fourth groups of single tax payers, the obligation to pay the military levy appears from January 1, 2025.
3. Single tax payers of the third group (IEPs) will pay a military levy in the amount of 1% of their turnover based on the results of the first quarter of 2025.
It is important that the military levy for single tax payers is established temporarily, in particular, for the period of martial law.
4. It is planned to increase the income tax rate for financial companies to 25% from 2025. And the income tax from banks for 2024 is 50%.
Among other things, the law introduces monthly reporting on personal income tax and social security tax instead of quarterly. It is noted that this is necessary to ensure the transparency of the existing booking system.
If you need advice on changes in taxation rules for businesses and individuals, contact Visit Ukraine lawyers for qualified assistance. You can sign up for a consultation via a convenient messenger (WhatsApp / Telegram) or via the form on the website.
We remind you! New functions in the e-Entrepreneur service are launched by the Ministry of Digital Economy in Action. These functions are currently undergoing beta testing. We have already told you which services will soon appear in the application.
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