On April 7, the Verkhovna Rada adopted in principle and in full the draft Law of Ukraine “On Amendments to Clause 16-1 of Subsection 10 of Section XX ‘Transitional Provisions’ of the Tax Code of Ukraine Regarding the Collection of the Military Tax.”
This was reported by the press service of the Ministry of Finance.
The law provides for the continuation of the military tax at the current rates for three years following the year in which martial law is lifted or canceled.
The law establishes the following current military tax rates:
- For individuals – 5% (for servicemen and employees of the security and defense sector – 1.5% of income in the form of monetary allowances, except for income exempt from military tax);
- For individual entrepreneurs of the 1st, 2nd, and 4th groups of the single tax – 10% of the minimum wage set as of January 1 of the reporting year;
- For single tax payers of the 3rd group (individual entrepreneurs and legal entities, except e-residents) – 1% of income.
The military tax will be credited to the special fund of the State Budget of Ukraine and allocated to meet the needs of the Armed Forces of Ukraine.
The ministry emphasized that adopting this law is an important step for fulfilling Ukraine’s international obligations, including cooperation with the International Monetary Fund.
According to the Ministry of Finance’s calculations, continuing to collect the military tax at the current rates will allow approximately 140 billion hryvnias per year to be raised for the state budget.
