Entrepreneurs may not pay military tax: Ukrainians explained when this is possible.

Ukrainians were told when entrepreneurs may not pay military tax.

According to the State Tax Service, from 2025, entrepreneurs of the first and second groups of the single tax will pay a military tax of 800 hryvnias. However, some entrepreneurs may be exempt from this obligation in certain cases.

According to the publications, some entrepreneurs may not pay military tax for one calendar month:

• during vacation,
• during illness, if there is an approved extract from the Electronic Register of Sick Leave (sick leave for 30 days or more).

It is necessary to submit information about the periods of annual leave or temporary incapacity for work at the same Time as an application in any form. Entrepreneurs of the 1st and 2nd groups of the single tax without hired employees are exempt from military tax payments.

This privilege is provided for in the Transitional Provisions of the Tax Code of Ukraine.

For hired workers, the military tax increases from 1.5% to 5% of all types of income. Individual entrepreneurs in groups I, II, and IV of the single tax must pay military tax in the amount of 10% of the minimum wage. For these entrepreneurs, mandatory reporting on military tax is also introduced.

However, tax consultant Mykhailo Smokovych notes that this information does not fully correspond to reality.

'Entrepreneurs can take advantage of the privilege and not pay either military tax or the single tax for one month of the year if they have not received income and do not have hired employees. But there is no exemption from military tax due to the absence of hired employees,' he explains.

According to paragraph 1.13 of the Transitional Provisions of the Tax Code, individual entrepreneurs of the first and second groups without hired employees are exempt from military tax for a one-month period during the year if they have taken a tax vacation or can confirm their illness with an extract from the Electronic Register of Sick Leave.

That is, all individual entrepreneurs of groups 1 and 2, who do not have hired employees, will have to pay military tax. The absence of employees does not relieve this tax obligation.

Property taxes have also been increased in Ukraine.