Марія Бровінська Money 1 December 2024, 10:11

The historic tax hike is already in place. How much will FOPs have to pay from December 1, and should we expect further increases?

On November 28, President Volodymyr Zelenskyi signed Law No. 4015 (former draft law No. 11416-d) on tax increases. It comes into force from today, December 1. As a result of the tax changes, the authorities plan to attract additional financial funds to the budget, which will amount to UAH 8 billion by the end of 2024, and UAH 140 billion in 2025. We tell in detail about the changes that will affect FOPs.

Military collection

Previously, money from the military levy went directly to the state budget and could be redirected to needs other than financing the army.

According to the new law, the military levy will be directed through the special fund exclusively to finance the Armed Forces of Ukraine. At the same time, it will be increased to 5% from the previous 1,5%.

This means that instead of 19,5%, 23% (18% personal income tax + 5% personal income tax) will be withheld from the salary of employees. However, the rate will remain at 1,5% for military personnel and employees of law enforcement agencies.

People’s deputy Yaroslav Zheleznyak notes that the parliamentarians aim to cancel the VZ for entrepreneurs registered in the occupied territories and to provide an opportunity for FOPs of groups I and II without employees to go on vacation or sick leave without paying military duty once a year. To do this, draft law No. 9319 should be adopted within a week.

In addition, the document should regulate the payment of VZ by FOPs from the beginning of next year, since in the signed edition all natural persons-entrepreneurs are bargemen — the date of October 1 is indicated there.

New rules for FOPs

FPOs on the simplified tax system of groups I, II and IV must pay a monthly military levy in advance in the amount of 10% of the minimum wage established on January 1 of the reporting year. Since FPOs will start paying VZ from January 1, 2025, this amount will be UAH 800 for them. Advance payments can be made up to the end of the year.

FOPs in I, II and IV groups will have to pay the military levy. Even if a person does not carry out entrepreneurial activities and does not receive income or profit, the tax office will automatically calculate the tax on the twentieth day of each month.

According to the accountant Olena Sinyuk, the 1st and 2nd group of EPs must pay the annual tax for December in the amount of UAH 710 by December 20. «Here, those who like to run ahead of the tax office to hell — better stop, because the tax office has to scribble down its explanations regarding this law; let them decide on the details for paying the VZ. Yes, I know that there were already publications of some props. But that was BEFORE the law came into force. And our bunnies know how to change tax details 2-3 times. Every January, the annual entertainment is «find the right bill to pay,» the specialist noted in her Telegram channel.

Group III taxpayers and legal entities will also pay the military levy, but at the rate of 1% of their income. That is, if the income of the FOP III group at the end of the month will be UAH 20,000, the amount of the military levy will be UAH 200. «For the third group, I will not pay anything until January; for the first and second groups, I will pay the VZ approximately on December 18-19,» Sinyuk said.

Changes in reporting

In the IV quarter of 2024, there are no changes in the reporting. However, the accounting programs must be adjusted to take into account the new WZ rate. From January 1, 2025, a new monthly period for submission of combined reporting from personal income tax, personal income tax and tax returns will be introduced.

The Ministry of Finance will approve the new form of the report and the procedure for filling it out, and the State Tax Service will provide a template for electronic submission.

For untimely or incomplete payment of the military levy by FOPs of the I, II and IV groups (later than the 20th of the month), a fine is imposed in the amount of 50% of the amount of the military levy, i.e. from January 1 of the new year, this amount will be UAH 400.

Entrepreneurs in the III taxation group must pay the single tax (EU) within 10 days after the deadline for submitting the quarterly declaration. If they are late, they will receive a fine: up to 30 days late — 5% of the amount owed. If more than 30 days pass, the penalty increases to 10% of the amount not paid on time.

However, you can receive a penalty even if you paid the required amount on time, but you were charged a penalty that you did not pay off earlier. Since the deposited funds will cover the debt, the Tax Office’s account will have a smaller amount than necessary.

Will taxes be raised further?

According to Yaroslav Zhelezniak, deputy chairman of the parliamentary committee on finance, tax and customs policy, the probability of further tax increases already in 2025 looks minimal at the moment.

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