The Verkhovna Rada of Ukraine has adopted a bill that extends the military tax for citizens. The relevant bill regarding amendments to paragraph 16-1 of subsection 10 of section XX “Transitional Provisions” of the Tax Code of Ukraine was approved on April 7 in the first reading and as a whole.
This is reported by Finway
What Will the Rates Be and Who Will Pay
According to the new provisions, the military tax remains at 1.5% of citizens’ income. Deductions will be made from salaries, income from entrepreneurial activities, as well as other taxable incomes. The rate has not changed, which helps maintain the stability of revenue to the state budget.
The obligation to pay the military tax applies to all able-bodied citizens who earn income on the territory of Ukraine. The law does not introduce any new categories of taxpayers, nor does it provide additional benefits or exemptions from this tax.
Duration and Future Prospects
The new law provides for the continuation of the military tax collection during the period of martial law and for an additional 12 months after its conclusion. This allows the government to plan long-term revenues to meet the needs of the defense sector and support the Armed Forces of Ukraine.
“The military tax will be collected until the end of martial law and for another year after its cancellation.”
The authorities emphasize that such measures are necessary due to the ongoing aggression from Russia and the need to finance defense expenditures. The funds raised will be directed exclusively to the needs of the country’s defense capability.