new-taxation-for-sole-proprietors-will-be-effective-from-january-1-the-parliament-approved-the-law

New taxation for individual entrepreneurs will be in effect from January 1: the Rada has approved the law

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The Parliament has made changes to the Tax Code, according to which increased taxes for individual entrepreneurs will be in effect not from October 1, but from January 1, 2025. This is reported by UNN with reference to MP Yaroslav Zheleznyak.

According to Zheleznyak, the Rada supported in the second reading the draft law No. 9319 on the taxation of rewards for gig contracts for residents of "Diia City". 268 MPs voted "for".

"It was this one that had an amendment that corrected the tax bill 11416d and the "backdating" where taxes are being moved from October 1 to January 1, 2025 for individual entrepreneurs", the MP pointed out.

It is also envisaged to reduce the rental rate for the extraction of kaolin.

Until the end of the war, entrepreneurs will not be fined for not submitting reports on controlled foreign companies (CFCs).

Addition

On December 3, the Verkhovna Rada Committee on Finance, Tax and Customs Policy introduced an amendment to the draft law "On Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts on Stimulating the Development of the Digital Economy in Ukraine", according to which for individual entrepreneurs of the third group, the new taxation will also come into effect on January 1, 2025.

Reminder

On November 28, it was reported that President Volodymyr Zelenskyy signed the law No. 11416-d on the "historic" increase in taxes, which is also called the "resource" law.

The document provides, in particular:

  • Increase in the military duty on the income of individuals (salaries, dividends, additional benefits, etc.) from 1.5% to 5%;
  • Individual entrepreneurs on the unified tax of groups 1, 2 and 4 are obliged to pay a military duty monthly in the amount of 10% of the minimum wage;
  • For payers of the third group of the unified tax, a military duty rate of 1% of income is established;
  • Introduction of profit taxes for the financial sector. The corporate tax rate for banks for 2024 is 50%. For non-bank financial institutions (except insurers), the profit tax rate will be 25%.

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