The new tax rates are expected to bring additional revenue to the budget for the country's development
Ukrainian President Volodymyr Zelensky signed a law on tax increases on November 28.
New changes to tax legislation will come into force in Ukraine, implying an increase in taxes for individuals and entrepreneurs. In particular, the increase in military tax will increase from one and a half to five percent.
In the state budget for 2025, deputies have included support for teachers and an increase in pensions.
What Ukrainians can expect in the near future – read in the material TSN.ua.
Taxes will increase in November
Zelensky signed the law on the historic tax increase on November 28, and it will come into force on November 29. The text of the law was published in the online version of the parliamentary newspaper “Voice of Ukraine”.
The head of the Verkhovna Rada Tax Committee Daniil Getmantsev reported that the military tax at the new rate should be withheld only for 2 days in November.
“For sole proprietors, we have made a corresponding amendment, according to which the obligation to pay military tax at the new rates will be in effect for them from January 1, 2025, if the amendment is supported by the Verkhovna Rada next week. I am convinced that the amendment will be supported,” Getmantsev added.
The main changes according to the amendments to the Tax Code:
- the military tax rate will increase from 1.5% to 5% for all income of citizens.
- the income tax rate for banks increases to 50% for 2024.
- for individual entrepreneurs (SP) on the simplified taxation system, a military tax is introduced in the amount of 1% of income for single tax payers of group III, and for groups I, II and IV – 10% of the minimum wage.
In particular, it is expected that the tax increase will bring in about UAH 8 billion in 2024 and UAH 141 billion in 2025.
Finance Minister Serhiy Marchenko previously reported that after the president signs the law, it will be adjusted to avoid retroactivity.
Fuel prices will not increase
According to Serhiy Marchenko, there is currently no reason to increase gasoline prices. He stated that for now, the value added tax will not increase.
According to the changes to the Tax Code, the network of gas stations will face the so-called advance tax on profits. Each gas station will have to pay up to 60 thousand hryvnias monthly.
“This will not lead to an increase in the cost of gasoline. We are leveling the tax system. And this was the market's reaction,” he says.
The official clarified that now there are gas stations that pay profit tax, and there are those that do not.
Teachers will receive additional payments
President Zelensky also signed the law on the state budget for 2025. According to the Minister of Finance, teachers in Ukraine should receive special payments from January 1, 2025.
In particular, Ukraine approved the amount of additional payments to teachers.
However, the decision to introduce such support was not made immediately. Additional payments to teachers were taken into account during the finalization of the state budget of Ukraine for 2025.
The employees of general secondary education institutions of both state and municipal ownership will receive a cash bonus for the next year, the Ministry of Education announced.
“The resolution will be in effect from January 1, 2025 until the end of martial law (teachers will continue to receive the bonus until the end of the year in which martial law is lifted),” the statement said.
Starting in the new year, teachers will receive the following additional payments:
- from January 1, 2025 – an additional UAH 1,000 (UAH 1,300 for taxes);
- from September 1, 2025 – an additional UAH 2,000 (UAH 2,600 to pay taxes).
What will be the minimum wage in 2025?
The minimum wage for next year was approved by the Cabinet of Ministers of Ukraine when adopting the draft state budget for 2025.
The document also established the subsistence minimum for 2025. It also remained at the 2024 level.
Finance Minister Serhiy Marchenko noted that the social sphere is a priority. That is why its financing will continue to be stable.
“At this stage, and this was also agreed upon with partners, we do not have the opportunity to raise social standards. This year we raised the minimum wage by 19% – to 8,000 hryvnia. We believe it is possible to maintain this amount for the entire year next year,” he said.
Pension increase in 2025
In particular, in 2025, Ukrainians can expect two more stages of pension increases.
Also, in November 2024, pension payments will also increase. However, this only applies to those pensioners who will be entitled to an age supplement.
Certain categories of pensioners will receive financial assistance from the UN World Food Program. Payments will increase for those pensioners who turn 70, 75 and 80 years old in November.
Also in November, the pension size will increase for pensioners who are entitled to payments from the UN World Food Program.
Pensioners who received IDP status before February 24, 2022 and who have not passed physical identification before March 31, 2024, can undergo verification in November in any convenient way to continue payments.
It is noteworthy that already in 2025, Ukrainians will experience two stages of pension increases: indexation, which will take place in March, and an increase in the amount of payments for some pensioners in the summer.
Recall that earlier TSN.ua reported that this week the Verkhovna Rada adopted the country's budget for 2025 with record figures – UAH 3.94 trillion.