Self-employed individuals who are serving in the military are eligible for tax breaks: how to apply for them
7 May 15:01
Individual entrepreneurs and self-employed individuals serving in the military are entitled to a de facto moratorium on tax payments. This is reported in an article in a legal newspaper, according to "Komersant Ukrainian".
“Under martial law, the issue of economic survival for small and medium-sized businesses is just as acute as the issue of national security. For self-employed individuals (sole proprietors and those engaged in independent professional activities) who have taken up arms to defend Ukraine, the state has established a system of tax benefits. However, these benefits are not granted automatically,” the article states.
As of May 2026, the legislation clearly distinguishes between the obligations of those who continue their business activities and those who are physically unable to do so due to military service. Current clarifications from the State Tax Service confirm that not only those called up for mobilization but also contract soldiers are entitled to the relief.
Who is eligible for benefits
According to the State Tax Service’s clarifications, the following are eligible for benefits:
- Individual entrepreneurs (FOPs).
- Individuals engaged in independent professional activities.
“Such benefits are provided to entrepreneurs who were called up during mobilization or are serving in the military under a contract. It is important that they were registered as sole proprietors or self-employed individuals prior to being called up or signing a contract.”
Watch us on YouTube: important topics – without censorship
The law establishes a de facto moratorium on financial obligations to the budget for mobilized individuals. For the entire period of military service, starting February 24, 2022, such individuals are exempt from:
- The calculation and payment of personal income tax.
- Payment of the Single Tax.
- Payment of the military levy.
- The accrual and payment of the Single Social Contribution (SSC) for themselves.
“It should be noted separately that they are exempt from filing tax returns for the above-listed taxes and levies. An important detail is that the exemption applies unconditionally, regardless of whether the entrepreneur continues to receive income during service or has employees. This creates conditions for maintaining business viability through delegation of management without the risk of accumulating tax debt.”
As noted in the article, it is important to note that the exemption is retroactive, meaning it takes effect on February 24, 2022, and remains in effect until the last day of the month in which demobilization occurs. Even if the entrepreneur receives passive income or their business continues to operate remotely, the obligation to pay taxes on their own behalf is suspended.
How to obtain the exemption
Exemptions are not granted automatically, as tax authorities may not have information about a person’s change in status. To exercise the right to exemption, you must apply to the tax authority at your place of registration.
Required documents:
- A copy of the military ID.
- Or another document confirming conscription during mobilization.
- Or a copy of the service contract.
“These documents are submitted if the State Tax Service lacks information regarding the individual’s mobilization. Given the circumstances of service, the entrepreneur may be unable to apply in person. In such a case, the law permits the appointment of an authorized representative acting under a power of attorney.”
The law allows a mobilized sole proprietor to continue operations through an authorized representative. In such a case, the authorized representative calculates and pays salaries to employees. Personal income tax (PIT) and the Unified Social Tax (UST) for employees are paid by the authorized representative from the sole proprietor’s funds.
“Paragraph 25 of Subsection 10 of Section XX of the Tax Code of Ukraine does not provide tax breaks on the tax amounts themselves for hired employees. It merely establishes a special procedural mechanism for their administration.”
To support military personnel who are entrepreneurs, special temporary working groups have been established within the territorial offices of the State Tax Service, and dedicated “hotlines” are in operation.
As explained in the publication, this support model allows defenders to focus on carrying out combat missions, confident that their business activities are protected from tax pressure and bureaucratic sanctions.
Read us on Telegram: important topics – without censorship
