How mobilized sole proprietors can be exempted from paying taxes: step-by-step instructions
12 July 2025 07:58
Self-employed individuals who have been mobilized or signed a contract for military service are exempt from paying taxes and filing reports for the duration of their service. This is reported by "Komersant Ukrainian" with reference to the State Tax Service.
Thus, the relevant amendments to the Tax Code have come into force. The exemption is applied automatically based on data from the Unified State Register of Conscripts, Persons Liable for Military Service and Reservists.
What taxes do not need to be paid by mobilized individual entrepreneurs
During mobilization or contract service, self-employed persons are exempt from
- personal income tax (PIT);
- single tax (for groups 1-3);
- military duty;
- single social contribution (SSC) if the individual entrepreneur does not have employees.
When the tax exemption comes into force
The exemption is applied automatically, from the first day of the month in which:
- the person is mobilized,
- a service contract is concluded.
But not earlier than February 24, 2022.
The decision is based on data from the Unified State Register of Conscripts, Persons Liable for Military Service and Reservists. If the information is there, no additional documents are required.
What should a sole proprietor do to be exempt from taxes
If the data on mobilization/contract is in the Register:
No need to do anything. Tax and reporting exemption is granted automatically.
If there is no data in the Register:
if there is no data in the Register, you can submit an application and copies of supporting documents to the tax office yourself.
How the exemption works: important nuances
The State Tax Service will not charge advance payments of the single tax and military fee for the period of mobilization or the duration of the contract. If such amounts have already been accrued, they are subject to cancellation.
If a sole proprietor has been excluded from the register of single tax payers due to non-payment of tax liabilities during mobilization or contract service, it will be automatically restored.
In addition, mobilized individuals – entrepreneurs/independent professional activity/ farmers, unless they are persons subject to insurance on other grounds, information on which is available in the Register, have the right not to charge, calculate and pay the Single Contribution for the entire period of their military service, including contractual military service.
In addition, for the period of mobilization of the single contribution payer or the validity of the contract concluded with such a person, the accrued amounts of penalties and fines are subject to cancellation (cancellation) for reporting periods up to and including the first day of the month following the month in which the supervisory authority received information on the mobilization of the single contribution payer.
If a sole proprietorship has employees
If a sole proprietor has employees, he or she may authorize another person to pay salaries to employees. In this case, the authorized person accrues the unified social contribution, and the sole proprietor can pay it within 180 days after demobilization without penalties.
Reporting and payment after demobilization
Upon completion of service, a sole proprietor must:
- submit reports on the unified social contribution – within 150 days;
- pay taxes within 180 days.
No fines or penalties will be imposed if these actions are completed within the established timeframe.
What to do if there were violations before mobilization
If the sole proprietor failed to file a report or pay taxes before or during the service:
Liability does not apply if the obligations are fulfilled on time:
- reporting – up to 150 days after demobilization,
- payment – up to 180 days after demobilization.
Where to get advice
The State Tax Service has set up working groups in each territorial authority to help mobilized individual entrepreneurs and their families. All hotlines are working.
