Historic tax increase — Zelenskyy signed the law
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The President of Ukraine Volodymyr Zelenskyy signed the law on amendments to the Tax Code of Ukraine regarding the features of taxation during martial law. This is the largest tax increase ever.
This was stated on the website of the Ukrainian Parliament in the description of the law No. 11416-d.
Law on tax increase
On Thursday, November 28, Zelenskyy signed the law on a "historic" tax increase. The corresponding law was submitted by the MPs of Ukraine — members of the Ukrainian Parliament Committee on Finance, Taxation and Customs Policy.
The draft law on tax increase will come into effect on December 1.
Note that the relevant document was adopted on October 10, 2024, and the law was already sent for signature to the President of Ukraine on October 15.
The law directly envisages:
• an increase in the military levy rate from 1.5% to 5%;
• imposition of military levy for individual entrepreneurs of groups I, II and IV at the level of 10% of the minimum wage established on the 1st of the reporting month;
• individual entrepreneurs of group III will pay taxes in the amount of 1% of income in the form of military levy;
• imposition of a tax on excess profits of banks in the amount of 50%;
• introduction of a 25% profit tax for all financial companies, except insurance companies.
It should be recalled, that MP Olga Vasylevska-Smaglyuk explained that if the law on increasing taxes is signed in November, the military levy for individuals will increase to 5% in December.
Previously, we wrote that the Tax Committee decided to cancel the "retroactive" tax increase for individual entrepreneurs in 2024. This will help to avoid an additional financial burden on entrepreneurs.
