New rules for mobilized individuals-entrepreneurs: exemption from tax obligations

From December 1, 2024, the list of taxes and levies from which mobilized individuals-entrepreneurs and individuals involved in independent professional activities are exempted has been clarified. For a period of military service, they are exempted from obligation of:

- accrual, payment and submission of the personal income tax reporting;

- accrual, payment and submission of the single tax reporting;

- accrual, payment and submission of the military levy reporting as a part of the personal income or single tax reporting. 

Basis for such exemption is the following documents submitted at the tax registration place:

application of self-employed person;

copy of the military ID card or other document confirming conscription for military service during mobilization, for a special period.

It should be emphasized that the specified documents are submitted within 10 days after demobilization, and in case of a person undergoing treatment – within 10 days after its completion.

If a mobilized person has employees, then for a period of service such person may authorize another person to pay salary. Authorized person is obliged to accrue and withhold taxes and levies from income in the form of employees’ salaries. After demobilization, self-employed person must pay these taxes and levies to the budget within 180 days. In this case, fines and financial sanctions will not be accrued for this period.

For reference.

According to the Law of Ukraine № 4113-IX as of 04.12.2024 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine on stimulating development of digital economy in Ukraine”, Clause 1 of Paragraph 25 Sub-section 10 Section XX “Transitional Provisions” of the Tax Code of Ukraine is set out in a new edition.