“Historic” tax increase in Ukraine: the President signed the law
28 November 20:48
President of Ukraine Volodymyr Zelenskyy has signed Law 11416-d on a historic tax increase. This was announced by MP Yaroslav Zheleznyak on his Telegram channel on Thursday, November 28, Komersant ukrainskyi reports.
“After dragging it out for 44 days, the president signed the historic tax increase No. 11416-d. The one he himself agreed on in this version,” Zheleznyak wrote.
The law will come into force on December 1, 2024. The authors of the document hope that the tax changes introduced by it should bring in UAH 137 billion in 2025.
What the law No. 11416-d provides for
- increase in the military tax for the period until December 31 of the year in which martial law will be terminated, namely: increase in the rate from 1.5% to 5% for personal income; establishment of the military tax at 1% of the income of single tax payers of the third group; establishment of the military tax for individual entrepreneurs – single tax payers of the first, second and fourth groups at 10% of the minimum wage
- setting the corporate income tax rate for banks at 50% for 2024;
- setting the corporate income tax rate for non-bank financial institutions (except for insurers) at 25% from January 1, 2025;
- improving the proposed model for determining the amount of advance corporate income tax payments for gas stations;
- change of the tax period from quarterly to monthly for reporting on paid income in favor of individuals (for economic booking) from January 1, 2025;
- pegging the advance payment rate for currency exchange offices to the euro;
- extension until the end of the martial law of the benefit for charitable aid received from the budgets of other states;
- changes to rent in terms of PSO and crushed stone;
- exemption from taxation of income received under the “Made in Ukraine” program;
- changes to minimum retail prices for wine;
- changes to the minimum tax liability;
- instructing the Cabinet of Ministers to develop a draft law on the transfer of military duty to the special fund of the State Budget.
