Military duty for sole proprietors: what you need to know and how to avoid mistakes with the help of Legal Solutions

Recent changes in Ukrainian legislation have alarmed many individual entrepreneurs (IEs). Draft law No. 11416-d, which was passed and signed by the president, introduced a new obligation to pay the military fee starting in October 2024 for groups I and II of sole proprietors, and in February 2025 for group III. This innovation came as a surprise to most entrepreneurs who have not previously faced the need to pay such a fee.

Who is affected by the changes?

Group I and II sole proprietors will have to pay the first military fee in October 2024. It will amount to 10% of the minimum wage for January of the reporting year, which in 2024 will be equal to UAH 710 per month, and in 2025 - UAH 800. The fee will be charged monthly, just like the single tax. However, the report on payment will have to be submitted only once a year - in the annual declaration.

Group III sole proprietorships will start paying the military fee from February 2025, but the accruals will be made for the fourth quarter of 2024. This fee will be 1% of income and will be paid quarterly, along with the 5% single tax, which will increase the total tax burden to 6%.

What difficulties do entrepreneurs expect?

The new requirement raises many questions, especially for those who have barely coped with the current tax system. The vast majority of individual entrepreneurs have not had experience with paying the military fee, and the new system puts an additional burden on their accounting. In addition, the government has not yet provided full details and clarifications on the reporting form and deadlines for paying the fee, which increases uncertainty among entrepreneurs.

Legal Solutions: professional assistance in taxation of sole proprietorships

If you are a sole proprietor and have faced difficult situations due to the new tax changes, please contact a professional for help. Legal Solutions offers comprehensive tax consulting and legal support services for entrepreneurs. We will help you to:

• Calculate the military fee for your group correctly;
• Prepare and submit reports to the tax authorities;
• Get up-to-date details for paying fees;
• Avoid possible fines for late or incorrect payment of taxes.

Why Legal Solutions?

Our team of experts has in-depth knowledge of tax law and has been helping Ukrainian entrepreneurs minimize risks and optimize taxation for many years. We keep abreast of all legislative changes and provide timely and accurate advice. With us, you can focus on developing your business without worrying about tax innovations.

Contact Legal Solutions and we will help you confidently go through all the changes in legislation, staying in the legal field and complying with all the requirements of the tax authorities.

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