The President of Ukraine, Volodymyr Zelensky, has signed a law on tax increases (No. 11416-d). This information is available in the bill's card on the website of the Verkhovna Rada.
The bill was approved by parliament in its second reading on October 10. It was anticipated that the tax increase would be retroactive to October; however, the president delayed signing the adopted bill. According to Prime Minister Denys Shmyhal, it will come into effect on December 1.
The law, in particular, stipulates an increase in the military tax for employees from 1.5% to 5% and expands the circle of its payers to individual entrepreneurs (FOPs). Thus, FOPs under the third group of the single tax will pay a military tax of 1% of their income. Meanwhile, for individual entrepreneurs under the first, second, and fourth groups of the single tax, the military tax is set at 10% of the minimum monthly wage (the current minimum wage is 8,000 UAH, so the military tax will amount to 800 UAH).
The law also establishes a profit tax rate for banks for 2024 at 50% and determines the amount of advance payments for the corporate profit tax for enterprises engaged in retail fuel trade.
Additionally, a basic profit tax rate for non-banking financial institutions (excluding insurers) is set at 25%.
Tax Increases in Ukraine - Latest News
Recently, Prime Minister Denys Shmyhal announced that the laws on the state budget for 2025 and changes to the tax code will be signed in the coming days and will take effect on December 1. According to him, approximately 20 billion UAH this year and 140 billion UAH next year is the amount the government plans to cover due to the increase in the military tax.