Global Daily Tax News, Ukraine Raises Income Tax Rates, (Jan 6, 2025)

Ukraine substantially raised taxes on January 1, 2025, to continue to fund the war effort.

The corporate tax rate for financial institutions, other than insurers, has been increased from 18 percent to 25 percent.

For profits generated in 2024, a 50 percent tax applies to banking institutions.

Further, Ukraine has increased the surtax on residents' income from 1.5 percent to five percent. The rate for military personnel and employees of law enforcement agencies remains 1.5 percent.

The military levy has been extended to individual entrepreneurs of the third group at a rate of one percent from January 1, 2025. It will apply to individual entrepreneurs in the first, second, or fourth groups at a rate of 10 percent of the minimum wage – that is, it will apply at a fixed rate of UAH800 (USD19.25) per month.

The military levy applies to income from wages, bank deposits, real estate rentals, winnings, and other income.