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18 Oct. 2024

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Military duty for individual entrepreneurs: When and how much do you have to pay?

Finance
Work
BusinessUA
Ukraine
Military duty for individual entrepreneurs: When and how much do you have to pay?

The Verkhovna Rada has passed a law on the military tax for individual entrepreneurs, which will soon come into force. Find out when different groups of entrepreneurs will start paying the new tax and how much it will cost

Legal advice on starting and doing business in Ukraine
Legal advice on starting and doing business in Ukraine
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The Verkhovna Rada of Ukraine recently passed in the second reading the draft law No. 11416-d, which introduces a military tax for individual entrepreneurs. It is expected that the document will be signed by President Volodymyr Zelenskyy in the near future and will come into force. What changes await entrepreneurs and when they will come into effect are described below.


General provisions of the new law


The new law provides for the introduction of a military fee for all groups of individual entrepreneurs starting in October 2024. This means that in the near future, entrepreneurs on the simplified taxation system will face new financial obligations.


Peculiarities of paying the military fee for the 1st and 2nd groups of sole proprietors


The amount of the fee


For entrepreneurs of the 1st and 2nd groups, the amount of the military fee will be 10% of the minimum wage set for January of the current year. In 2024, this amount will be UAH 710, and in 2025 it will increase to UAH 800.


Payment terms and procedure


– The payment will be made on a monthly basis together with the single tax.

– The first payment for October 2024 is due by October 20 (the exact date may change depending on when the law comes into force).


Reporting


Reporting on the military fee for the 1st and 2nd groups of individual entrepreneurs will be submitted as part of the annual declaration.




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Rules for paying the military fee for the 3rd group of individual entrepreneurs


Amount of the fee


Entrepreneurs of the 3rd group will pay 1% of their income as a military fee.


Calculation features


The fee will be calculated on the basis of income received starting from October 1, 2024.


Payment terms


– The fee will be paid on a quarterly basis, within the same timeframe as the single tax.

– The first payment will be due by February 19, 2025.


Reporting


For the 3rd group of sole proprietorships, reporting on the military fee will be included in the regular single tax return.


Given the innovations, it is important for entrepreneurs to prepare for new financial obligations in advance. This will help to avoid possible fines and ensure the smooth operation of the business. Many entrepreneurs may also need professional legal assistance. Visit Ukraine's team of experienced lawyers is ready to provide you with comprehensive support on taxation and business issues. Our specialists will help you understand the nuances of the new law, correctly calculate the amount of the fee, and submit all the necessary documents on time. Contact us for a consultation to ensure your business has reliable legal protection in the face of new legislative changes.


We remind you! Organizational and legal forms of business in Ukraine have their own differences. Read more about the advantages and disadvantages of sole proprietorships and LLCs to make the right choice for your business.


Want to know more? Read the latest news and useful materials about Ukraine and the world in the News section.




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Visit Ukraine Insurance – insurance covering military risks for entry and travel in Ukraine;

Visit Ukraine Car Insurance – car insurance with extended coverage in Ukraine;

Visit Ukraine Legal Advice – comprehensive legal support on entry to Ukraine;

Visit Ukraine Tickets – bus and train tickets to/from Ukraine;

Visit Ukraine Tours – the largest online database of tours to Ukraine for every taste;

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Frequantly

asked questions

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