Starting January 1, taxes in Ukraine will increase: find out how much you'll need to pay.

The President of Ukraine, Volodymyr Zelensky, has signed a law that postpones the introduction of increased taxes for individual entrepreneurs (FOPs) until January 1, 2025. Additionally, according to the Ministry of Finance's press service, citizens will only pay the increased military tax for December 2024 on part of their income.

Taxes for FOPs

As noted by the Ministry of Finance:

• For FOPs of the first, second, and fourth groups, the tax rate will be 10% of the minimum wage, which will be 8000 UAH at the beginning of 2025. Therefore, their monthly military tax will amount to 800 UAH.
• Payors of the single tax of the third group (legal entities and FOPs) will start paying a military tax of 1% of their turnover based on the results of the first quarter of 2025.

Military Tax for Citizens

Income for 2024: Individuals will not pay military tax retroactively. The declared annual income for 2024 will be taxed at a rate of 1.5%.

From December 2024:

• Income from property transactions and the value of inherited or gifted property will be taxed at a rate of 5%.
• Other income (salary, rent, winnings, deposits, etc.) will also be subject to a military tax of 5%.
• Starting January 2025: The military tax rate on income declared in the annual declaration will increase to 5%.

Exceptions

Certain types of income are exempt from the military tax:

• OVGZ (government bonds) for individuals.
• Social payments, pensions, scholarships, and other incomes not subject to personal income tax.

For military personnel and law enforcement officers, the military tax rate remains at 1.5%.

Law on Tax Increases

The law came into effect on December 1, and its main innovation is the increase of the military tax rate from 1.5% to 5% for the income of Ukrainians.