Internet may become significantly more expensive due to tax increases for providers.

Changes in Ukraine's tax sphere from October 1, 2024

From October 1, 2024, a number of important changes in the tax sphere will come into effect in Ukraine. One of the most significant innovations will be the increase in the military levy from 1.5% to 5% for all citizens' incomes. This increase will significantly affect the majority of working Ukrainians.

Additionally, a military levy is introduced for individual entrepreneurs (FOP) - single tax payers of groups I, II, and IV. For them, the levy will amount to 10% of the minimum wage, which will be 800 hryvnias per month. Single tax payers of group III will pay a military levy of 1% of their income.

The changes will also affect the corporate sector. For all non-banking financial institutions except insurance companies, the profit tax rate will increase to 25%. The increase will be particularly noticeable for banks, which will pay a profit tax of 50%.

Enterprises engaged in retail trade of fuel are now required to make monthly advance payments of profit tax to ensure stable revenues to the budget from this sector of the economy.

The reporting procedure for income paid to individuals is changing. Instead of a quarterly reporting period, a monthly one is introduced. This is due to the need for economic control and will allow the state to more quickly monitor the dynamics of the population's income.

These large-scale tax changes may also affect the sphere of internet services, where many providers work as individual entrepreneurs. According to experts, internet service prices may rise by 10-15% in large cities and even more in rural areas due to the transition to the general taxation system and increased accounting costs.

Ukrainians are also warned about a possible decrease in internet service quality, as small operators will have to spend more funds on tax administration rather than on developing infrastructure and equipment.