Military duty and unified social contribution for individual entrepreneurs: what you need to know
18 October 2024 16:13
On 10 October, the Verkhovna Rada passed a law on tax increases. Its provisions will come into force on 1 October. Kommersant looked into how individual entrepreneurs should report and pay the military tax in accordance with the law on tax increases.
As tax consultant Mykhailo Smokovych explains, lawmakers have approved the submission of tax calculations for reporting on employees on a monthly basis, rather than quarterly, as is currently the case. This rule will come into effect as early as next year, 2025.
The Law also provides for monthly submission of tax calculations for employees starting from 2025.
Individual entrepreneurs of groups 1 and 2 will be required to pay 10% of the military tax on the minimum wage, which is UAH 8,000 per month, starting from 1 April 2024. Group 3 sole proprietors will have to pay 1% of the military tax on their income on a quarterly basis.
Penalties for non-payment or late payment of the military fee amount to up to 10% of the amount paid. Reporting on the military tax for sole proprietors of groups 1 and 2 will be included in the annual single tax return, and for sole proprietors of group 3 – in the quarterly return.
The law on the military fee is expected to be finalised by 20 October, and the details of payments will be explained by the State Tax Service.
The possibility of cancelling the single social contribution (SSC) exemption from 1 October 2024 is also being discussed, but has not yet been decided.
