Cabinet explains which taxes will increase from December and which from January

The Cabinet of Ministers has explained which taxes will increase from December 2024 and which from January 2025.

This is stated in the government's message on the Telegram channel, the Ukrainian News agency reports.

The new tax changes provide for:

- an increase in the military duty rate for individuals from 1.5% to 5%, the changes come into force on December 1 of this year;

- the establishment of a military duty for individual entrepreneurs: individual entrepreneurs of groups 1, 2, 4 will pay 10% of the minimum wage established at the beginning of 2025 (UAH 8,000), individual entrepreneurs of group 3 will pay a military duty in the amount of 1% of their turnover based on the results of the first quarter of 2025, these changes come into force on January 1, 2025.

The increase in the income tax rate for financial companies to 25% will take place from 2025.

The law also establishes a 50% tax on bank profits for 2024.

At the same time, the government emphasizes that government bonds, in particular, war bonds, for individuals continue to be taxed neither by personal income tax nor by military duty.

Social benefits, pensions, scholarships and other income that is not subject to personal income tax are also not taxed by military duty.

As the Ukrainian News agency earlier reported, on November 28, President Volodymyr Zelenskyy signed the law on increasing taxes, adopted by the Verkhovna Rada on October 10 (bill No. 11416-d).

On November 27, Prime Minister Denys Shmyhal announced that the law on increasing taxes will come into force on December 1, this is a requirement of key creditors, in particular, the International Monetary Fund.