Military Tax: Are There Benefits for Individual Entrepreneurs.

The President signed a law on the taxation of individual entrepreneurs during the martial law period, which provides for the mandatory payment of military tax by all individual entrepreneurs on the simplified tax system.

The law will provide benefits for retired individual entrepreneurs, people with disabilities, and those registered in combat zones.

Currently, individual entrepreneurs on the simplified system have the option not to pay a single social contribution until the end of 2024. However, if you do not pay the contribution, your length of service, which affects the calculation of pension payments, is not accrued.

The draft state budget law for 2025 proposes to restore the payment of a single social contribution for all individual entrepreneurs on the simplified system, but the document has not yet been approved.

Some individual entrepreneurs may be exempted from paying a single tax. This applies to individual entrepreneurs of I-II groups registered in combat zones or areas of temporary occupation.

The law also provided for exemption from paying military tax for individual entrepreneurs on the simplified system registered in combat zones and areas of temporary occupation. However, this provision was removed during the second reading of the bill, so entrepreneurs from these zones will have to pay military tax.

Military tax rates for individual entrepreneurs of different groups:

• Group I - 10% of the minimum wage (800 UAH);
• Group II - 10% of the minimum wage (800 UAH);
• Group III - 1% of monthly income.

The law also does not provide benefits for retirees and people with disabilities, so they will also be obliged to pay the military tax.

Currently, no individual entrepreneur pays the military tax, as the law has not yet come into force. But the tax service must explain for which period entrepreneurs will have to pay this tax and also provide details for payment.