New taxes for individual entrepreneurs in 2025: who will pay, when and how much

21 February 2025 06:32

Starting in 2025, individual entrepreneurs (IEs) in Ukraine of all taxation groups will be required to pay military duty. The innovation will affect both simplified taxpayers of groups 1, 2 and 4 and single tax payers of group 3. The amount of payments depends on the taxation system, and fines for violations can lead to serious consequences for businesses. This was reported by "Komersant Ukrainian" with reference to the Government online.

Previously, the military fee was mainly paid by officially employed citizens, but from now on, it must be paid by individual entrepreneurs of all groups.

Military duty for individual entrepreneurs: key changes

Previously, the military fee (1.5% of income) was paid mainly by employees, but from 2025, this obligation applies to all individual entrepreneurs.

The new rules provide for:

FOPs of groups 1, 2, and 4: a fixed payment of UAH 800 per month (10% of the minimum wage, which in 2025 is UAH 8,000);
FOPs of group 3: 1% of the income, regardless of whether it is an individual or a legal entity.

Thus, each entrepreneur will contribute to the financing of the army, and the amount of the fee will depend on their category.

How and when to pay the military fee

The rules of payment differ depending on the group:

IEsof groups 1, 2, and 4:

A fixed amount of UAH 800 per month.
It can be paid monthly, quarterly (UAH 2400), or for the year (UAH 9600).
The deadline is by the end of the reporting period.

Individual entrepreneurs ofthe 3rd group:

The fee is 1% of income.
Payment is made quarterly within 10 days after filing the declaration.

Controlling authorities independently calculate the amount for groups 1, 2, and 4 by sending notifications to entrepreneurs. Sole proprietors of group 3 indicate the amount of the fee in the quarterly declaration on their own.

Reporting and declarations

To avoid penalties, it is important to submit reports correctly:

groups 1 and 2: annual declaration. If the income is exceeded or the taxation system is changed, a quarterly report is required.
group 4: declaration by February 20 of the following year (for example, for 2025 – in 2026).
group 3: a quarterly declaration reflecting 1% of the tax on income.

Penalties for violations

Late payment of the military fee is fraught with consequences:

Penalties for late payments;
Penalties for each day of delay;
Possible blocking of bank accounts or other business restrictions.

The tax authorities emphasize that debts to the state can complicate the activities of an entrepreneur, so it is worth meeting the deadlines.

Why was the fee for individual entrepreneurs introduced?

The new rules are a response to the need for additional funding for the army during the war. The military fee has become a mandatory contribution for all categories of individual entrepreneurs, regardless of the amount of income or form of taxation. For simplified taxpayers of groups 1, 2 and 4, a fixed amount simplifies accounting, while for group 3, the linkage to income makes payments proportional to earnings.