The Verkhovna Rada has approved a draft amendment to the Tax Code in its first reading. If passed in its entirety, the new tax measures will come into effect on October 1.
According to MP Yaroslav Zheleznyak on Telegram, 241 deputies supported the draft law No. 11416-d in principle.
The proposed changes are expected to provide an additional resource to the state budget of 58 billion UAH in 2024 and 137 billion UAH in 2025, primarily through increased military taxes on citizens.
Key proposals include:
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Increase in Military Tax: The military tax on all citizen incomes will rise from 1.5% to 5%. The Ministry of Finance estimates this will bring an additional 27.3 billion UAH to the budget in 2024 and 107.7 billion UAH in 2025.
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Military Tax for Individual Entrepreneurs: A 10% military tax on the minimum wage (800 UAH per month) for individual entrepreneurs in the first, second, and fourth tax groups. This is expected to generate 1.7 billion UAH in 2024 and 7.8 billion UAH in 2025.
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Military Tax for Simplified Tax System: A 1% military tax on the income of individual entrepreneurs in the third tax group, projected to provide 6.8 billion UAH in 2025.
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Corporate Income Tax for Non-Banking Financial Institutions: A 25% tax rate for non-banking financial institutions (excluding insurers), expected to add 157.7 million UAH to the budget in 2025.
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Advance Payments on Corporate Income Tax: Monthly advance payments for companies involved in fuel retail, expected to generate 1 billion UAH in 2024 and 4.3 billion UAH in 2025.
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Bank Tax Rate: A 50% income tax rate for banks for the year 2024, projected to provide 27 billion UAH.
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Change in Tax Reporting Period: A shift from quarterly to monthly reporting for income paid to individuals, necessary for economic reservation.
