The law on tax increases, published today, will come into effect tomorrow, November 29. This was announced by the head of the finance committee, Daniil Getmantsev.
"Considering the timing of the law's publication, it will take effect from November 29. Therefore, the military tax at the new rate must be withheld only for 2 days in November. As for individual entrepreneurs, we have made the relevant amendment, stipulating that their obligations to pay the military tax at the new rates will take effect from January 1, 2025, provided the amendment is supported by the Verkhovna Rada next week. I am convinced that the amendment will be supported," – wrote he on his Telegram channel, noting that an official clarification should be published in the morning.
If the military tax rate of 1.5% was in effect in Ukraine for 28 days in November, then in the last two days of November it will rise to 5%.
People's Deputy from the "Golos" party, Yaroslav Zheleznyak, pointed out that this will cause a lot of inconvenience.
"This will create so much inconvenience. They dragged it out for 44 days and could have waited just one more day. Instead, they have created a significant problem for businesses out of nowhere. But now nothing can be done – on November 29 (and not December 1 as promised), the law will come into effect. And for the remaining days, businesses will have to somehow calculate based on the 5% rate," he stated.
Tax Increases in Ukraine
On Thursday, November 28, 2024, President of Ukraine Volodymyr Zelensky signed the law on tax increases (No. 11416-d), which was adopted by the parliament back on October 10.
This law provides for an increase in the military tax for employees from 1.5% to 5% and expands the category of payers to include individual entrepreneurs. It also sets the profit tax rate for banks for 2024 at 50% and determines the amount of advance payments for corporate profit tax for businesses engaged in retail fuel trade.
Additionally, it establishes a base profit tax rate for non-banking financial institutions (excluding insurers) at 25%.
Ukrainian Prime Minister Denys Shmyhal stated that the document would come into effect on December 1.