According to the new legislation, the increase in the tax for individual entrepreneurs (IE) is postponed to January 1, 2025.
As reported by the press service of the Ministry of Finance, the law signed by President Volodymyr Zelensky introduces changes to the military tax for individual entrepreneurs and citizens.
For IEs of the first, second, and fourth groups, the tax rate is set at 10% of the minimum wage, which will be established at the beginning of 2025 (8000 UAH). This means that the military tax for IEs in these groups amounts to 800 UAH per month.
For single tax payers of the third group (legal entities and IEs), the military tax will be calculated at a rate of 1% of turnover, with the first payments due at the end of the first quarter of 2025.
Regarding individuals, the Ministry of Finance has stated that there will be no "retroactive" military tax for individuals. All income declared by citizens for 2024 will be subject to a military tax at a rate of 1.5%. However, income from property transactions, as well as the value of inherited or gifted property, will be taxed at a rate of 5% starting December 1, 2024.
From January 1, 2025, the military tax rate for all other types of income for individuals, such as salaries, rent, winnings, or interest on deposits, will increase to 5%.
It is noted that military tax does not need to be accounted for income in the form of social benefits, pensions, scholarships, as well as obligations under domestic government bonds (OVGZ), which are not subject to either personal income tax or military tax.
The military tax for military personnel and law enforcement officers will remain at 1.5% under the new law.
The law introducing these changes came into effect on December 1, 2024. Its main news was the increase in the military tax rate on all income of Ukrainians from 1.5% to 5%.