Ukraine‘s New Tax Code: What FLP Needs to Know About Military Tax in 2025
In late 2024, significant changes to the Tax Code came into effect, introducing updates that will impact FLP (Private Entrepreneurs) in Ukraine. Among these changes, the military tax rate has seen a substantial increase, with important implications for FLP obligations in 2025.
Military Tax Rates for FLP in 2025
Andrey Zablovsky, head of the Secretariat of the Entrepreneurs’ Council under the Cabinet of Ministers of Ukraine, shared with Ukrainian Radio that the military tax rate for FLP in 2025 will vary. The military tax, previously at 1.5%, has been raised to 5%.
- Simplified System FLP (First, Second, Fourth Groups): Military tax is mandatory and set at a minimum of 10% (800 UAH) of the minimum wage, payable monthly. The first payment for these groups is due by January 20, 2025.
- General System FLP (Third Group): Military tax is payable at 1% of income, with the deadline for the first quarter’s payment being May 20, 2025.
Delayed Tax Hike for FLP
President Volodymyr Zelensky signed a law in late December 2024, pushing back the effective date of increased tax rates for FLP. Instead of October 1, 2025, the new rates will come into effect on January 1, 2026.
Expanding Military Tax Base
The law also extends the military tax base to include FLP, who were previously exempt.
Stay informed and prepared for these changes to ensure your business remains compliant and successful in the ever-evolving Ukrainian tax landscape.