President Volodymyr Zelenskyy has signed a law that changes the date of introduction of higher tax rates for individual entrepreneurs. Instead of October 1, 2024, the new rates will take effect from January 1, 2025. Writes UNN with reference to the bill card.
This law regulates the payment of taxes after their significant increase. It was created to simplify taxation for Diia City residents and their employees.
In addition to individual entrepreneurs, the changes also apply to legal entities operating under the simplified taxation system of the third group, for which the tax increase has also been postponed.
The law on tax increases came into force on December 1. The main innovation was an increase in the military tax rate from 1.5% to 5% for all incomes. In addition, the law introduces the obligation to pay the military tax for individual entrepreneurs. Initially, it was planned that they would pay the fee for the fourth quarter of 2024, but on December 4, the Verkhovna Rada decided to postpone this provision to 2025.
According to the law, single tax payers of the third group - both individual entrepreneurs and legal entities - must pay 1% of the military duty. For sole proprietors operating under the simplified taxation system of groups I, II and IV, the military fee is set at 10% of the minimum wage (approximately UAH 800 per month).
Starting from January 1, 2025, all tax agents will be required to submit monthly reports on the unified social tax (UST), personal income tax (PIT), and military duty (MD).
Recall
On October 10, the Verkhovna Rada of Ukraine passed draft law No. 11416-d on a significant tax increase.