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Mobilized individual entrepreneurs are exempt from paying taxes and reporting to the State Tax Service. How does the tax benefit work?

Self-employed individuals and sole proprietors who join the Armed Forces of Ukraine are eligible for tax benefits. It is important that their activities are officially registered before the moment of conscription or conclusion of a contract.

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Mobilized individual entrepreneurs are exempt from paying taxes and reporting to the State Tax Service. How does the tax benefit work?

Self-employed individuals and sole proprietors who join the Armed Forces of Ukraine are eligible for tax benefits. It is important that their activities are officially registered before the moment of conscription or conclusion of a contract.

Self-employed persons are exempt from military service for the entire period of military service (but not earlier than February 24, 2022), namely:

  • calculate and pay personal income tax, single tax, military duty and single contribution for oneself;
  • submit tax returns for these taxes.

The benefit is valid even if there are employees or the person continues to receive income from business activities during service, the State Tax Service explains .

The discharge begins on the 1st of the month in which the conscription or contract was signed, and lasts until the last day of the month in which demobilization (discharge from service) took place.

To exercise the right to tax exemption, you must provide the following to the tax office with your place of registration:

  • a copy of a military ID card or other document confirming conscription for military service during mobilization for a special period;
  • a copy of the contract (provided that the supervisory authority does not have information about mobilization or conclusion of the contract).
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