Military Tax for Single Tax Payers Starting January 1: The President Signed the Law

For individual entrepreneurs (FOPs) of the first, second, and fourth tax groups, the tax rate will be set at 10% of the minimum wage established at the beginning of 2025 (8,000 UAH). Consequently, the military tax will be calculated based on this amount, resulting in 800 UAH per month.

Single tax payers of the third group (both legal entities and individual entrepreneurs) will begin paying a military tax at the rate of 1% of their turnover, starting from the first quarter of 2025.

Additionally, individuals will not be subject to retroactive military tax payments. The total annual income declared by individuals for 2024 will be taxed at a military tax rate of 1.5%, excluding income from property transactions and inherited or gifted assets, which will be taxed at a rate of 5% starting December 1, 2024. Other individual income (e.g., salary, rent, winnings, deposits, etc.) will also be subject to a military tax of 5% starting December 1, 2024.

The military tax rate will increase to 5% for income declared in annual tax returns beginning January 1, 2025.

At the same time, government bonds (including military bonds) held by individuals remain exempt from both personal income tax and military tax.

Social benefits, pensions, scholarships, and other income not subject to personal income tax (PIT) will also remain exempt from military tax.

The military tax rate for servicemen and employees of security forces, as defined by law, will remain at 1.5%.