Changes in tax payments for individual entrepreneurs in 2025: new rules and military levy

From January 1, 2025, new tax rules for individual entrepreneurs (IEPs) came into force in Ukraine, which include the introduction of military levy and the return of the mandatory payment of the single social contribution (SSC). These changes affected IEPs of all groups, namely simplified tax payers, and from the new year entrepreneurs must pay taxes according to new details and rules.

One of the main innovations is the introduction of military levy for IEPs. According to the new rules, for IEPs of groups I, II and IV, a military levy is established in the amount of 10% of the minimum wage, which was determined as of January 1 of the reporting year. For IEPs of group III and legal entities, the military levy is 1% of the entrepreneur's income.

For individual entrepreneurs who pay a single tax of the first, second and fourth groups, the military levy in 2025 will be 10% of the minimum wage established at the beginning of the year. Thus, for entrepreneurs of these groups, the monthly advance payment of the military levy in 2025 is 800 UAH.

Along with the military levy, the rates for the single tax and the single tax are also changing. For individual entrepreneurs of group I, the taxes look like this:

- Single tax – 302.80 UAH,
- Military levy – 800 UAH,
- Single tax – 1760 UAH.

For individual entrepreneurs of group II, the amounts are slightly higher:

- Single tax – 1600 UAH,
- Military levy – 800 UAH,
- Single tax – 1760 UAH.

For individual entrepreneurs of group III, the single tax rate depends on turnover and is 5% of income. In addition, they are subject to military duty in the amount of 1% of turnover and single tax in the amount of UAH 1,760.

These innovations create additional challenges for individual entrepreneurs in terms of paying taxes. Therefore, entrepreneurs should be careful and timely make all necessary payments to the budget in order to avoid fines and sanctions for non-payment or late payment of taxes. It is recommended to contact banks and tax authorities to obtain up-to-date details for paying military duty, single tax and single tax.