Tax hikes and monthly unified reporting: Hetmantsev approves draft law

The Verkhovna Rada's Tax Committee has recommended that the Verkhovna Rada adopt as a basis the revised draft law N11416-d on amendments to the Tax Code of Ukraine regarding the peculiarities of taxation during martial law. This was announced by the Chairman of the Committee Danylo Hetmantsev.

The revised draft law provides, in particular:

♦ increase of the military tax rate from 1.5% to 5%;

♦ establishing a military fee in the amount of 1% of income for single tax payers of the third group

♦ setting the military fee for individual entrepreneurs - single tax payers of groups I, II and IV at 10% of the minimum wage.

♦ it is determined that the established peculiarities of military taxation will be valid until December 31 of the year in which martial law is terminated;

♦ setting the corporate income tax rate for non-bank financial institutions (except for insurers) at 25%;

♦ improvement of the proposed model for determining the amount of advance payments for the purposes of corporate income taxation of enterprises engaged in retail fuel trade;

♦ monthly reporting on the amount of income accrued (paid) in favor of individual taxpayers and the amount of tax withheld from them, as well as the amount of the accrued single contribution.

In addition, a separate draft law is to be developed to amend the Budget Code of Ukraine to transfer the revenues from the military fee to a special fund of the State Budget for the purpose of their targeted allocation for security and defense needs.