Starting from 1 October, a military tax of 10% of the minimum wage will be introduced for individuals of the single taxation system of groups I, II and IV. Thus, 23% (18% personal income tax and 5% military duty) will be withheld from employees’ salaries for October, rather than 19.5%. What does this mean in practice, we looked into [Kommersant].
In 2024, these categories of taxpayers will have to pay an additional UAH 710 per month. This is 10% of the minimum wage as of 1 January 2024.
Starting from 2025, it will be UAH 800.
For single tax payers of the third group, a military tax of 1% of income is to be introduced in October.
This percentage will be added to the existing 5% of the single tax. For example, currently, for every UAH 10,000 of monthly income, sole proprietors of the third group pay UAH 500 in single tax. Starting from October, they will pay UAH 600. The procedure for paying the additional tax is currently being clarified.
It is expected that the tax increase starting in October will raise an additional UAH 58 billion to the state budget in 2024 and another UAH 137 billion in 2025. This money is planned to be raised mainly by raising the military tax on all income from 1.5% to 5%.
Author – Anastasia Fedor