The tax increase was accepted — the President signed the Law

On December 25, the President of Ukraine signed the Bill No. 9319, which postpones the tax increase for Sole Proprietors (FOP) on the single tax from October 1, 2024, to January 1, 2025.

The bill was passed by the Verkhovna Rada in early December, and its main goal is to increase budget revenues during a difficult time for the country.

Officials hope that this decision will strengthen financial stability and provide additional resources for economic recovery and support for the Armed Forces of Ukraine.

What changes are provided for in the Law?

The new provisions will affect Sole Proprietors (FOP) and legal entities under the simplified taxation system, third group:

1. Increase in the military levy rate: the rate for Ukrainians will rise from 1.5% to 5% of income.

2. Military levy for Sole Proprietors (FOP):

• FOPs of Group III and legal entities under the simplified taxation system are required to pay 1% military levy.

• For FOPs of Groups I, II, and IV, a fixed military levy is set at 10% of the minimum wage (approximately 800 UAH per month).

3. Postponement of military levy payment for 2024: payment for FOPs, which was to be made for the fourth quarter of 2024, is postponed to 2025.

Despite the risks of this increase, most analysts agreed that this is a necessary step to strengthen the country's economy during wartime.

It should be noted that on December 4, the Verkhovna Rada, in Bill No. 9319, passed amendments that postponed the payment of the military levy for FOPs from October 1 to January 2025.

We wrote earlier about the new tax rates.