The Ministry of Finance explained the tax increase: how much and when payments will be due.

The law signed by the President of Ukraine, Volodymyr Zelensky, postpones the tax increase for individual entrepreneurs (FOP) to January 1, 2025. Additionally, citizens will pay an increased military levy for December only on part of their income.

This was reported by the press service of the Ministry of Finance.

For individual entrepreneurs of the first, second, and fourth groups, the levy rate will be 10% of the minimum wage established at the beginning of 2025 (8000 UAH). Consequently, the military levy will be calculated based on this amount, resulting in 800 UAH per month.

Taxpayers under the single tax of the third group (legal entities and FOPs) will start paying a military levy of 1% on their turnover based on the results of the first quarter of 2025.

The Ministry of Finance stated that individuals will not be required to pay the military levy "retroactively." The declared total annual income of individuals for 2024 will be taxed at a military levy rate of 1.5%.

At the same time, income from property transactions and income in the form of inherited or gifted property will be taxed at a rate of 5% starting from December 1, 2024.

Other individual incomes (income from salaries, rent, winnings, deposits, etc.) will also be taxed at a military levy rate of 5% starting from December 1, 2024.

“The military levy rate will increase to 5% for incomes declared in the annual declaration starting January 1, 2025,” the Ministry of Finance clarified.

Furthermore, government bonds for individuals continue to be exempt from both personal income tax (PIT) and military levy. Social benefits, pensions, scholarships, and other incomes not subject to PIT will also be exempt from the military levy.

The military levy rate for military personnel and employees of law enforcement agencies specified in the law remains at 1.5%.

Background. Earlier, Mind reported that the law on tax increases came into effect on December 1. The main aspect was the increase of the military levy rate on all incomes of Ukrainians from 1.5% to 5%.