The tax raising and military levy is signed: what awaits Ukrainians

In Ukraine, on December 1, important tax changes are coming into force. What will be the size of the military levy and when entrepreneurs and employers will have to start paying new amounts of taxes, in the focus. On Thursday, November 28, President of Ukraine Volodymyr Zelensky signed a law on amendments to the Tax Code to finance defense forces and ensure financial stability. The focus has understood how the innovation would affect the salaries of Ukrainians and tax loads for business.

On November 28, President of Ukraine Volodymyr Zelensky signed a law approved by the Verkhovna Rada on taxes raising and military levy. The main one in the law is the increase in military levy from all incomes of Ukrainians from 1. 5% to 5% of this and 2025. This law will come into force on December 1. Innovations, as experts explained earlier, are one of the key requirements of creditors and is important for filling in all the funds for defense.

It is expected that in 2025, due to the increase of taxes, the revenues of the year will increase by UAH 141 billion. Increasing the rates of military levy from 1. 5% to 5% will give UAH 107. 7 billion; Establishment of military levy for taxpayers who are on a simplified tax system, namely, for individuals-entrepreneurs I, II, III and IV groups-UAH 13. 7 billion, and from the receipts of the III group III to the budget will receive 929 million hryvnia .

Thus, if the taxation of citizens' income is now 19. 5% (18% of PITs plus 1. 5% of military levy), it will increase to 23% from December 1. This amount will also be deducted from the income from the placement of deposit deposits. The record of record taxes in Ukraine will come into force on December 1. Among other things, it envisages an increase in military levy, but at the same time there will be no separate taxes "back".

"The sleepless night is the result - the resource law will come into force on December 1, 2024. It will be published respectively on November 30. President of Ukraine Volodymyr Zelensky signed this law on November 28. And immediately it was published by the Voice of Ukraine, which envisaged the entry into force of November 29. That is, in two days of the current month (November 29-30), you would have to pay increased taxes, including salaries.

According to Yaroslav Zheleznyak, the member of the Verkhovna Rada Financial Committee, this added work to accountants who had to calculate payments for these two days. However, the situation was settled. Since the entry into force of the law in December, the military levy from the income of individuals increases from 1. 5% to 5%. This applies to all types of income, including wages. Thus, employers will keep more of employees' official salaries.

In this case, the rate of personal income tax (PIT) remains unchanged - 18%, as well as the single social contribution (ESA), which is 22%. Thus, employers will pay not 19. 5%, but 23% (PIT Plus military fee). This means that from each thousand hryvnias earned, employers will have to pay 230 hryvnia instead of 195. The increased rate of military fee extends to the interest income of individuals for deposits. However, for military personnel, the rate of military fee remains 1. 5%.

It is important to note that the rate of 1. 5% applies to the income accrued before the entry into force of new rules. For example, the advance is paid in the first half of October. For individuals of entrepreneurs I, II and IV groups of single tax, a military levy is introduced, which will be 10% of the minimum wage (as of the first day of the month). Currently, the minimum wage is 8000 UAH, so these categories of FOPs are obliged to pay 800 UAH per month.

For the entrepreneurs of the group III on the "SimplC", a military levy of 1% of the income on the results of the first quarter of 2025 is established. For individuals-entrepreneurs (FOPs) of the first, second and fourth groups of single tax payers, the obligation to pay a military fee appears from January 1, 2025. From January 1, 2025, monthly reporting on a single social contribution, personal income tax and military levy for all tax agents are introduced.

By the end of this year, there is a quarterly report. There are benefits that give the right not to file a tax return on property and income to those who receive charitable assistance (including from abroad). This provision applies to internally displaced persons and Ukrainian refugees abroad who receive payments. For the FOP, reporting on the payment of military fees is also introduced.