Recent changes in Ukrainian legislation have significantly affected individual entrepreneurs (IEs) by introducing a new military tax. The adopted draft law No. 11416-d obliges sole proprietors of groups I and II to pay the fee starting from October 2024, and group III will start doing so from February 2025. These innovations require a careful approach to tax reporting, which can be a challenge for small businesses.
Military fee: what entrepreneurs need to know?
For groups I and II of sole proprietors:
- Payments will start in October 2024. The first payment must be made by October 20, but the deadlines may change depending on the date of final signing of the law.
- The amount of the military fee is 10% of the minimum wage in January of the reporting year. In 2024, it will be UAH 710 per month, and in 2025 - UAH 800.
- Payments will be made monthly, but the military fee reporting is submitted once a year - together with the annual declaration.
- Payment is made quarterly, simultaneously with the single tax, increasing the total tax rate to 6% of income.
- As for Groups I and II, reporting will be submitted as part of the annual declaration.
Key Challenges for Business
The military tax innovation adds complexity to accounting and reporting, especially for those sole proprietors who are not used to the new rules. It is not yet known exactly what details and reporting forms will need to be used to pay the fee, which causes entrepreneurs to be concerned and have many questions.
How can Key Solutions help?
Key Solutions offers professional tax consulting services and support for entrepreneurs in complex taxation issues. Our experts will help you:
- Calculate the military fee correctly;
- Prepare the necessary reporting;
- Get the latest details for paying the tax;
- Meet all deadlines and avoid penalties.
Why choose Key Solutions?
We keep abreast of all changes in legislation and offer entrepreneurs up-to-date solutions to minimize tax risks. By working with us, you can confidently adapt to new tax rules and focus on growing your business.
Contact Key Solutions to stay one step ahead and confidently cope with new tax challenges.
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