President of Ukraine Volodymyr Zelensky has signed Law No. 11416-d, enacting a historic tax increase.
This was reported on the website of the Verkhovna Rada.
According to Deputy Head of the Tax Committee Yaroslav Zheleznyak, the law will come into effect on November 30.
As previously reported, the tax increase includes the following changes:
- Raising the military tax on wages of individuals (including participants in the “Diia.City” regime) from 1.5% to 5%, effective upon the law’s entry into force. An exception applies to military personnel, whose rate remains at 1.5%.
- Increasing the military tax on other personal income (excluding wages) from 1.5% to 5%, starting January 1, 2025.
- Introducing a military tax of 10% of the minimum wage (currently 800 UAH) for sole proprietors in the first, second, and fourth groups.
- Implementing a military tax for sole proprietors in the third group at 1% of their income.
- Raising the corporate income tax rate for banks for 2024 from 25% to 50%. Since most taxes for this year have already been paid under the old rate, the new rate will apply retroactively.
- Increasing the corporate income tax rate for non-banking financial institutions (excluding insurance companies) from 18% to 25%, effective January 1, 2025.
- Introducing monthly advance corporate tax payments for gas stations: 30,000, 45,000, or 60,000 UAH per station, depending on its type. Overpayments will not reduce future tax liabilities.
- Establishing an advance corporate tax payment for currency exchange points: €700 per point in Kyiv, €600 in cities with populations over 50,000, and €200 in smaller localities.
- Setting a minimum land tax of 700 UAH or 1,400 UAH per hectare.
- Requiring monthly reporting on personal income tax (PIT), military tax, and unified social tax starting January 1, 2025. This was previously linked to the introduction of “economic conscription deferrals” but is now necessary for monitoring compliance with new deferral criteria.
- Exempting the “national cashback” from PIT and military tax in 2024–2025.
- Raising rent fees for extracting crushed stone, clay, granite, and sand to at least $5 per ton.
