After the war, the 5% military levy could be replaced with a "reconstruction tax." What is known
After the war ends in Ukraine, a new reconstruction tax may be introduced, potentially replacing the current 5% military levy.
After the war ends in Ukraine, a new reconstruction tax may be introduced, potentially replacing the current 5% military levy.
Such a scenario is mentioned in the updated Memorandum on Economic and Financial Policy, Liga.net reports .
According to the document, the government plans to determine the parameters of the new tax after the end of the war. So far, neither its rate, nor the administration mechanism, nor the circle of payers have been specified.
At the same time, current legislation already provides that the increased military levy will not be in effect indefinitely. Three years after the termination or abolition of martial law, its rate will automatically decrease from 5% to 1,5%.
Thus, the authorities are already considering options for how to ensure financing for the country’s post-war reconstruction after the increased military levy ends.
This may also be important for the IT industry, as military duty is paid, in particular, by employees, individual entrepreneurs, and residents of special tax regimes in accordance with current legislation. If the new tax is introduced, its model may affect the tax burden of businesses and specialists.
As a reminder, amendments to the Tax Code of Ukraine came into force on December 1, 2024, increasing the military levy rate from 1,5% to 5% for most taxpayers. This decision was made to increase revenues to the state budget in the context of a full-scale war.
Individual entrepreneurs will be able to pay taxes directly on their smartphone via Privat24: how the new service works
Individual entrepreneurs will be able to pay taxes directly on their smartphone via Privat24: how the new service works
Read the country’s main IT news in our Telegram
Read the country’s main IT news in our Telegram
