Private entrepreneurs and military levy: what will change in 2025?

Private entrepreneurs and military levy: what will change in 2025?

The new tax increase law, signed by the president, obliges private entrepreneurs to pay the military levy. This provision, in addition to increasing rates, introduces new rules for entrepreneurs of all groups.

When will the changes take effect?

Although the law stipulated the start of military levy payments from October 1, 2024, the government recommends waiting for the parliament’s approval of amendments. According to clarifications from tax services, particularly Taxer, it is expected that the new rules will come into effect:

• For private entrepreneurs of groups 1-2 — from January 2025. The first payment should be made by January 20.
• For private entrepreneurs of group 3 — from May 2025 (based on the results of the first quarter).

However, the final dates depend on the adoption of changes to the legislation.

How will the military levy be calculated?

The rates of the levy vary depending on the group of the entrepreneur:

• Groups 1-2: a fixed amount of 800 UAH/month (10% of the minimum wage).
• Group 3: 1% of income.

This levy will not be included in the single tax but will be paid to a separate account, the details of which can be clarified with local tax authorities or online services.

Other tax changes

From 2025, the obligation to pay the single social contribution (SSC), which was previously canceled during the period of martial law, will be reinstated. The minimum monthly payment will be 1760 UAH, and the maximum will be 35,200 UAH.

The rules for submitting reports will also change: reports on the accrual of salaries for hired employees will be submitted monthly, and the declaration forms for sole proprietors will be updated, including sections on the military levy.

These innovations are aimed at increasing budget revenues under war conditions, but they are causing concern among entrepreneurs due to reporting complications and additional expenses.