Historic tax increase in Ukraine: the law has been signed.

The President of Ukraine, Volodymyr Zelensky, has signed Law No. 11416-d regarding a historic increase in taxes. This information is available on the Rada's website. The law will come into effect on November 30.

The tax increase includes the following changes:

• Raising the military tax on the salaries of individuals (including participants in the "Diia.City" regime) from 1.5% to 5% effective from the law's enactment date. An exception will be made for military personnel (who will remain at 1.5%).

• Increasing the military tax on other sources of income for citizens (excluding salaries) from 1.5% to 5% starting January 1, 2025.

• Introducing a military tax of 10% of the minimum wage (currently 800 UAH) for individual entrepreneurs in the first, second, and fourth groups.

• Introducing a military tax for individual entrepreneurs in the third group at a rate of 1% of their income.

• Raising the profit tax rate for banks for the year 2024 from 25% to 50%. Since they have already paid taxes at the old rate for most of this year, the new tax will be applied retroactively.

• Increasing the profit tax rate for non-banking financial institutions (excluding insurance companies) from 18% to 25% starting January 1, 2025.

• Introducing monthly advance payments on profit tax for gas stations: 30, 45, or 60 thousand UAH for each station depending on its type. Overpayments will not be considered for reducing future tax liabilities.

• Introducing an advance payment on profit tax for currency exchange points at 700 euros for each exchange point in Kyiv, 600 euros for cities with a population of over 50,000, and 200 euros for other settlements.

• Introducing a minimum land tax of 700 UAH and 1,400 UAH per hectare.

• Implementing monthly reporting on personal income tax, military tax, and unified social contributions starting January 1, 2025. Previously, this was linked to the introduction of "economic booking," but now this provision is necessary for monitoring compliance with the newly reserved requirements.

• Exempting the "national cashback" from personal income tax and military tax in 2024-2025.

• Increasing the rent for the extraction of gravel, clay, granite, and sand to no less than $5 per ton.

It was previously reported that Zelensky signed the law on the state budget for 2025.