Regarding the main innovations in tax legislation from January 1, 2025

Norm that is being changed or put into effect

Title of regulatory legal act amending tax legislation

Essence of changes

Corporate income tax

Sub-paragraph "g" of Sub-paragraph 135.2.1.6 Sub-paragraph 135.2.1 Paragraph 135.2 Article 135 of the Tax Code of Ukraine (hereinafter – Code)

Law of Ukraine № 4113-IХ as of 04.12.2024 "On amendments to the Tax Code of Ukraine and certain other legislative acts on stimulating development of digital economy in Ukraine"

Pension contributions within framework of the non-state pension provision and insurance payments under voluntary health insurance contracts made by the Diia City residents for benefit of their employees and gig specialists are exempted from taxation with the "tax on withdrawn capital"

Sub-paragraph 140.5.6 Paragraph 140.5 Article 140 of the Code

Changes come into force regarding specifics of taking into account expenses for accruing royalties in connection with entry into force of the Law of Ukraine "On media" and loss of force of the Law of Ukraine "On television and radio broadcasting"  

Paragraph 141.13 Article 141 of the Code

For the corporate income tax payers involved in trade of foreign currency in cash, corporate income tax advance payments are set in a fixed amount expressed in Euros (instead of minimum wages) for each foreign currency exchange point, which are paid in amount according to the official UAH exchange rate established by the National Bank of Ukraine on the first day of first month of a calendar quarter in which advance payment is made.

Paragraph 63¹ Sub-section 4 Section ХХ of the Code

For the Diia City residents – corporate income tax payers under special conditions during the martial law in Ukraine, value of charitable contributions for the state defense needs are not considered as the "tax on withdrawn capital" taxation object

Paragraph 136.1 ¹ Article 136 of the Code

Law of Ukraine № 4015-IХ as of 10.10.2024 “On amendments to the Tax Code of Ukraine and other laws of Ukraine on ensuring balanced budget revenues during the martial law”

Income tax rate base has been changed from 18 to 25 percent for financial institutions (except insurers)

Sub-paragraph 133.4.4 Paragraph 133.4 Article 133 of the Code

Law of Ukraine № 4112-IХ as of 04.12.2024 "On amendments to the Tax Code of Ukraine to take into account provisions of recommendations of council of the Organization For Economic Cooperation And Development regarding tax measures to further combat bribery of foreign officials in international business transactions"

From March 25, 2025, exclusion of a non-profit organization from Register of non-profit institutions and organizations and assessment of the corporate income tax liability, penalties and fines in case that the controlling authority establishes the fact of using income (profits) for the purpose of providing unlawful benefit during commission of a criminal offense provided for in Articles 369, 369-2 of the Criminal Code of Ukraine, directly or indirectly (through third parties), regardless of the unlawful benefit’s amount

Sub-paragraphs 140.6.1-140.6.3 Paragraph 140.6 Article 140 of the Code

From March 25, 2025, determining the corporate income taxation object, expenses and transactions in respect of which:

the taxpayer has a reason to believe that there are circumstances (facts) that may indicate provision of improper benefit to official (including official of a foreign state);

the taxpayer received information from the controlling authority about circumstances (facts) discovered by it during the audit, which may indicate provision of illegal benefit;

court verdict has been issued that the taxpayer's transactions were carried out with an aim of providing the taxpayer with improper benefit to official (including official of a foreign state)

Sub-paragraphs 141.9-1.2.16-141.9-1.2.17 of Paragraph 141.9-1.2 Paragraph 141.9-1 Article 141 of the Code

From March 25, 2025, new taxation object has been defined for the Diia City residents – taxpayers under special conditions, namely, transaction to provide illegal benefit to official (including official of a foreign state), which is taxed at a basic 18 percent rate

Paragraph 41 Sub-section 4 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 1795-VIII as of 20.12.2016 “On amendments to Section XX “Transitional Provisions” of the Tax Code of Ukraine regarding support for the aircraft manufacturing industry”

Benefit, which provided for the income tax exemption for aircraft manufacturing enterprises, defined according to provisions of Article 2 of the Law of Ukraine "On development of the aircraft manufacturing industry", is no longer valid.

Transfer pricing

Sub-paragraph «а» of Sub-paragraph 14.1.159 Paragraph 14.1 Article 14 of the Code

Law of Ukraine № 3813-IХ as of 18.16.2024 “On amendments to the Tax Code of Ukraine regarding the tax administration peculiarities during the martial law for taxpayers with a high level of compliance with tax legislation”

List of criteria for connection of legal entities has been added:

income (revenue) of a resident legal entity from the sale of products to a separate non-resident legal entity during a calendar year constitutes 75 percent or more of income of such resident legal entity from the sale of products to all non-residents, provided that such income constitutes 50 percent or more of the total income of such legal entity from the product sales;

cost of products purchased by a resident legal entity from another separate non-resident legal entity during a calendar year is 75 percent or more of the products cost purchased by such entity from all non-residents, provided that amount of such purchase transactions is 50 percent or more of the total cost of products purchased by such resident legal entity.

Clause 13 of Sub-paragraph «c» of Sub-paragraph 14.1.159 Paragraph 14.1 Article 14 of the Code

Lower limit for the ownership share of corporate rights of each person in the next legal entity in a chain for determining relatedness has been increased (from 20 to 25 percent).

Sub-paragraph 39.2.1.2 of Sub-paragraph 39.2.1 Paragraph 39.2 Article 39 of the Code

Approaches to forming the list of states (territories) for purposes of Sub-paragraph "c" of Sub-paragraph 39.2.1.1 Sub-paragraph 39.2.1 Paragraph 39.2 Article 39 of the Tax Code have been changed.

Cabinet of Ministers of Ukraine takes into account the following criteria:

states (territories) included in the list of offshore zones approved by the Cabinet of Ministers of Ukraine;

states (territories) included in the list of states (jurisdictions) that do not comply or improperly comply with recommendations of international, intergovernmental organizations involved in a counteraction against legalization (laundering) of proceeds from crime or financing of terrorism or financing of proliferation of weapons of mass destruction;

states (territories) whose competent authorities, based on results of two consecutive reporting (tax) periods (years), do not ensure timely and complete exchange of tax and financial information (particularly, information on the ultimate beneficial owner) upon requests from the central executive body implementing state tax policy.

Suggestions for the list of states (territories) that meet criteria specified in this Sub-paragraph, with appropriate justification, are submitted annually by October 1 by the central executive body implementing state tax policy to the central executive body ensuring formation and implementation of state financial policy.

If changes to the specified list are approved by the Cabinet of Ministers of Ukraine before November 30, such changes are applied from January 1 of the reporting year following calendar year in which such changes are made. If changes to the specified list are approved after November 30, such changes are applied from January 1 of the second reporting year following calendar year in which such changes are made.

Sub-paragraph 39.2.1.2¹ was added to Sub-paragraph 39.2.1 Paragraph 39.2 Article 39 of the Code

Established criteria according to which transactions with non-residents, organizational and legal form of which is included in the list approved by the Cabinet of Ministers of Ukraine, are recognized as uncontrolled.  

List of organizational and legal forms approved by the Cabinet of Ministers of Ukraine includes organizational and legal forms of non-residents who do not pay income tax (corporate tax), including on income received outside the state (territory) of such non-residents’ registration, and/or are not tax residents of the state (territory) in which they are registered as legal entities.    

Business transactions of the taxpayer with a non-resident, whose organizational and legal form is included by the Cabinet of Ministers of Ukraine in the list of organizational and legal forms of non-residents, in the absence of criteria specified in Sub-paragraphs "a" - "c", "g" of Sub-paragraph 39.2.1.1 Sub-paragraph 39.2.1 Paragraph 39.2 Article 39 of the Code, are recognized as uncontrolled if at least one of the following conditions is present:

non-resident is a resident of the state (territory) with which Ukraine has concluded international agreement on the avoidance of double taxation, which is confirmed by submitting to the central executive body implementing state tax policy, by October 1 of year following the reporting year, a certificate in paper or electronic form in compliance with requirements of the Laws of Ukraine “On electronic documents and electronic document management” and “On electronic identification and electronic trust services”, which confirms that non-resident is a resident of a country with which Ukraine has concluded relevant international agreement (except for the state (territory) included in the list of states (territories) approved by the Cabinet of Ministers of Ukraine according to Sub-paragraph 39.2.1.2 Sub-paragraph 39.2.1 Paragraph 39.2 Article 39 of the Code), according to Paragraph 103.5 Article 103 of the Code.

Clause 7 of Paragraph 120.3 Article 120 of the Code

Law of Ukraine № 4112-IХ as of 04.12.2024 "On amendments to the Tax Code of Ukraine and certain Laws of Ukraine to take into account provisions of recommendations of council of the Organization for Economic Cooperation and Development regarding tax measures to further combat bribery of foreign officials in the international business transactions"

Increased fine for failure to submit notification on participation in the international group of companies:

100  times (was 50) subsistence minimum for able-bodied person established by the law as of January 1 of the tax (reporting) year

Clause 4  of Paragraph 120.6 Article 120 of the Code

Changed approach to determining amount of fine in case of untimely declaration of controlled transactions in the submitted report on controlled transactions in case of submission of a clarifying report:

fine in the amount of one subsistence minimum for able-bodied person established by the law as of January 1 of the tax (reporting) year for each calendar day of untimely declaration of controlled transactions in the submitted report on controlled transactions in case of submitting a clarifying report, but not more than amount equal to one of the two values, whichever is smaller – either 300 subsistence minimums for able-bodied person established by the law as of January 1 of the tax (reporting) year, or 0.5 percent of the amount of controlled transactions not declared in the submitted report on controlled transactions

Clause 8 of Paragraph 120.6 Article 120 of the Code

Reduced fine for late submission of notification on participation in the international group of companies: 

fine in the amount of one subsistence minimum for able-bodied person, established by the law as of January 1 of the tax (reporting) year, for each calendar day of untimely submission of notification on participation in the international group of companies, but not more than 50 (was 100) subsistence minimums for able-bodied person, established by the law as of January 1 of the tax (reporting) year

Clauses 1 – 4 of Paragraph 72 Sub-section 10 Section XX "Transitional provisions"of the Code

Law of Ukraine № 4113-IХ as of 04.12.2024 “On amendments to the Tax Code of Ukraine and other laws of Ukraine on stimulating development of the digital economy in Ukraine”

Changed approach to applying sanctions for violations related to the submission of report on controlled foreign companies committed in a period from January 1, 2022 and during the martial law in Ukraine until the last calendar day (inclusively) of a calendar month in which the martial law is terminated or canceled:

provided that the controlling entity fulfills obligations stipulated in Article 39-2 of the Code within six months after termination or cancellation of the martial law – financial sanctions for violations stipulated in Clauses 1 – 8 of Paragraph 120.7 Article 120 of the Code do not apply

Personal income tax

Paragraph 170.14¹ Article 170 of the Code

Law of Ukraine № 4113-IХ 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”

For the Diia City residents procedure for applying the appropriate personal income tax rate paying income to the taxpayers – resident specialists of the Diia City has been clarified:

tax rate of 5 percent is applied to income of specialists – residents of the Diia City starting from a calendar month following the calendar month in which status of the Diia City resident was acquired. Income accrued (paid) in a calendar month in which status of the Diia City resident was acquired is taxed at the 18 percent rate;

it is clarified that for relevant calendar months in which the Diia City resident did not meet requirements of relevant legislation, personal income tax is paid at the resident’s own expense at the 18 percent rate, minus tax that has already been paid (transferred) to the budget from such income;

it is established that by December 31 of calendar year following the calendar year in which tax agent acquired status of the Diia City resident on special conditions (according to Part 3 Article 5 of the Law of Ukraine “On stimulating development of digital economy in Ukraine”), income paid to specialists resident of Diia City is subject to the personal income tax rate of 5 percent, even in calendar month in which they did not meet requirement to have average number of employees and gig specialists of more than 9 people. If, after this deadline, such tax agent – Diia City resident continues to fail to meet the specified requirement, he/she is obliged, within period specified for monthly tax (reporting) period, to independently calculate and pay (transfer) to the budget at own expense the personal income tax at the 18 percent rate on income of specialists resident of Diia City paid during the last three months, taking into account amounts of paid personal income tax

Sub-paragraph «b» Paragraph 176.2 Article 176 of the Code

Law of Ukraine № 4015-IХ as of 10.10. 2024 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine on ensuring balanced budget revenues during the martial law”

From January 1, 2025, tax agents are required to submit monthly tax calculations to the tax authorities regarding income amounts accrued (paid) to individual taxpayers, amounts of tax withheld from them, as well as amounts of accrued single contribution. Prior to this, quarterly deadline for submitting such tax calculations has been established

Value added tax

Paragraph 189.3
Article 189 of the Code

Law of Ukraine № 4142-IХ as of 17.12.2024 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding exemption from the value added tax on import of certain defense products to the customs territory of Ukraine”

Methodology for determining sales price of used vehicle determining tax base in case supply of such vehicle has been changed, namely: for persons not registered as the taxpayer, sales price of used vehicle is determined based on the price specified in the purchase and sale agreement, at the taxpayer’s choice: either not lower than average market cost of relevant vehicle or not lower than market cost of such vehicle calculated by the subject of valuation activities.

Paragraph 13² Sub-section 2 Section ХХ "Transitional provisions" of the Code

Tax benefit for the VAT exemption for supply of services for demonstration, distribution and screening by demonstrators and distributors of national films and foreign films dubbed or dubbed in the state language has been extended until December 31 of year in which the martial law is terminated or cancelled.

Paragraph 12 Sub-section 2 Section ХХ "Transitional provisions" of the Code

Tax benefit of the VAT exemption for transactions related to supply of national films, as well as supply of works and services for production of national films, etc., has been extended until December 31 of year in which the martial law is terminated or cancelled.

Paragraph 208.7 was added to Article 208 of the Code

Law of Ukraine № 4113-IХ 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”

List of the VAT taxable items excludes transactions involving supply of services on the customs territory of Ukraine by a non-resident person not registered as the VAT payer under a gig contract concluded according to Article 17 of the Law of Ukraine “On stimulating development of digital economy in Ukraine”.

Paragraph 4¹ Sub-section 2 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 1795-VIII as of 20.12.2016 “On amendments to Section XX “Transitional Provisions” of the Tax Code of Ukraine regarding support for the aircraft manufacturing industry”

Benefit of the VAT exemption expires for transactions with:

import to the customs territory of Ukraine under the customs regime of product import (except for excisable products) used for the aircraft industry’s needs;

supply to the customs territory of Ukraine of results of scientific research and development work carried out for the aircraft industry’s needs. 

Paragraph 8 Sub-section 2 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 344-IX as of 05.12.2019 “On amendments to the Tax Code of Ukraine on the creation of favorable conditions for activities of enterprises and organizations founded by public associations of persons with disabilities”

Benefit of zero VAT rate for product supply directly manufactured by enterprises and organizations of public associations of persons with disabilities, which are founded by public organizations of persons with disabilities and are their property is no longer valid.

Paragraph 65 Sub-section 2 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 3553-IX as of 13.01.2024 “On amendments to the Tax Code of Ukraine to bring certain norms into accordance with the Law of Ukraine “On the customs tariff of Ukraine” and clarification of certain provisions”

Benefit regarding provision of installments for the VAT payment upon import to the customs territory of Ukraine of equipment and components placed under the customs import regime is no longer valid.

Paragraph 81 Sub-section 2 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 2139-IX as of 15.03.2022 “On amendments to the Tax Code of Ukraine and certain other legislative acts of Ukraine regarding introduction of a differentiated rental payment for natural gas extraction”

Exemption from the VAT taxation at the 7 percent rate for provision of air transport services for domestic transportation of passengers and baggage is no longer valid.

Paragraph 92 Sub-section 2 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 3474-IX as of 21.11.2023 № "On amendments to the Tax Code of Ukraine regarding taxation peculiarities of banks and other taxpayers"

Exemption from the VAT taxation for import to the customs territory of Ukraine of unmanned aerial vehicles, scopes, binoculars, portable radio stations, etc., under the customs import regime is no longer valid.

Excise tax

Sub-paragraphs 14.1.60² and 14.1.227¹
Paragraph 14.1
Article 14 of the Code

Law of Ukraine № 3878-IХ as of 18.07.2024 "On amendments to the Tax Code of Ukraine regarding implementation of provisions of the European Union law on the excise tax"

Clarification of the following terms:

"total amount of the excise tax liabilities on cigarettes" and calculation of share of the total amount of the excise tax liabilities in the weighted average retail selling price of cigarettes (including excise tax on the retail sale of excisable products);

"weighted average retail selling price of cigarettes", namely, the weighted average retail selling price of cigarettes is indicated – price calculated from the total cost of all cigarettes (taking into account all taxes, including amount of the excise tax on the retail sale of excisable products) sold by manufacturers in the customs territory of Ukraine and imported by importers to the customs territory of Ukraine.

Sub-paragraph 14.1.227¹ Paragraph 14.1
Article 14 of the Code

Law of Ukraine № 2245-VIII as of 07.12.2017 “On amendments to the Tax Code of Ukraine and certain legislative acts of Ukraine regarding ensuring balanced budget revenues in 2018”

Introduction of determining the weighted average retail selling price of cigarettes and the total amount of the excise tax liabilities on cigarettes, as well as establishing procedure for determining share of the total amount of the excise tax liabilities in the weighted average retail selling price (60 percent of the cost) of cigarettes.

Rent for the subsoil use

Paragraph 252.8 Article 252 of the Code

Law of Ukraine № 4113-IХ 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”

For mining enterprises that extract minerals from rocks, commodity products of the mining enterprise (hereinafter – Commodity products), which, according to Section V “Mineral products” of the Law of Ukraine № 2697-IX as of 19.10.2022 “On the Customs tariff of Ukraine”, are classified by codes according to Ukrainian classification of the foreign economic activity products:

2517 – pebbles, gravel, broken or crushed stone;

2505 – natural sands of all kinds;

250700 – kaolin and other kaolinic clays,

have been introduced for the Rent taxation purposes; the minimum actual sale price of listed Commodity products as a unit of the tax base.

Tax liabilities are calculated at the actual sales price for aforementioned Commodity products determined by the subsoil users at the weighted average (by sales volume) in reporting period of the sales price of relevant type of mineral (mineral raw material) under supply contracts, but not less than unit of the tax base for:

Ukrainian classification of the foreign economic activity products 2517 – 6.5 USD per 1 ton;

Ukrainian classification of the foreign economic activity products 2505 – 5.00 USD per 1 ton;

Ukrainian classification of the foreign economic activity products 250700, which, depending on its properties, is recognized as a mineral raw material for the subsoil area object under approved conditions:

not suitable for primary processing (enrichment) – 40 USD per 1 ton;

suitable for primary processing (enrichment) – 120 USD per 1 ton.

Land tax

Paragraph 7 Sub-section 6 Section ХХ "Transitional provisions" of the Code

Law of Ukraine № 1795-VIII as of 20.12.2016 “On amendments to Section XX “Transitional Provisions” of the Tax Code of Ukraine regarding support for the aircraft manufacturing industry”

Exemption from land tax for the aircraft manufacturing entities that fall under provisions of Article 2 of the Law of Ukraine "On development of the aircraft industry" and carry out development and/or manufacture with the final assembly of aircraft and their engines, except for land plots on which social, commercial, agricultural and non-industrial construction facilities are located, is no longer valid.

Military levy

Paragraph 16¹ Sub-section 10 Section ХХ of the Code

Law of Ukraine № 4113-IХ 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”

For individuals-entrepreneurs – single tax payers (except electronic residents (e-residents):

Military levy is established from January 1, 2025 to December 31 of year in which martial law, introduced by Decree of the President of Ukraine № 64/2022 as of 24.02.2022 “On introduction of the martial law in Ukraine”, approved by the Law of Ukraine № 2102-IX as of 24.02.2022 “On approval of Decree of the President of Ukraine “On introduction of the martial law in Ukraine”, will be terminated or canceled.

Rate for:

Groups I, II and IV– 10 percent of the minimum wage established by the law as of January 1 of tax (reporting) year, calculated per calendar month (in 2025 – 800.0 UAH);

Group III – 1 percent of income determined according to Article 292 of the Code.

Single tax payers of Groups I, II and IV pay military levy by making advance payment not later than the 20th of the current month(inclusively).

Single tax payers of Group III pay military levy within 10 calendar days after deadline for submitting the single tax payer’s declaration for the tax (reporting) quarter.

Single tax payers reflect amounts of military levy (including monthly advance payments of military levy) in the single tax payer’s declaration.

Have a right not to pay or are exempted from paying military levy:

1. Single tax payers of Groups I and II whose tax address is located in territories of hostilities or in territories of Ukraine temporarily occupied by the russian federation as of the date of beginning of hostilities or temporary occupation;

2. Single tax payers of Groups I and II who do not use labor of hired persons are exempted from paying military levy for one calendar month per year during vacation, as well as for a period of illness lasting 30 or more calendar days.

Calculating the minimum tax liability for single tax payers of Groups II and III and individuals-entrepreneurs – single tax payers of Group IV, amounts of paid military levy are included in the total amount of paid taxes.

For individuals – entrepreneurs who are not single tax payers, and individuals who carry out independent professional activities:

Tax liability from the military levy for income received by individuals-entrepreneurs who are not single tax payers or individuals involved in independent professional activities, which is included in the total annual taxable income for the reporting (tax) year2024, is determined at the military levy rate of 1.5 percent.

Military levy rate of 5 percent will apply to income included in the total annual taxable income starting January 1, 2025.

For individuals receiving income subject to annual declaration. 

1. Annual tax liability from the military levy on the taxpayer’s taxable income included in the total annual taxable income for the reporting (tax) year 2024 and the final calculation of tax liabilities, which is carried out in the submitted annual property status and income tax declaration, including foreign income, is determined at the military levy rate of 1.5 percent (except for income from property transactions, income in the form of value of inherited or gifted property).

Military levy rate of 5 percent is applied to income included in the total annual taxable income and the final calculation of tax liabilities, for which the annual property status and income tax declaration accrued (paid) to taxpayers is submitted starting from January 1, 2025.

Such income of individual particularly includes:

certain types of income that are not subject to taxation upon payment, but are not exempted from taxation (forgiven (cancelled) principal amount of the taxpayer’s debt (loan), amount exceeding the annual non-taxable amount of non-targeted charitable assistance, taxable part of income from the sale of one’s own agricultural products, etc.);

income received from a person who is not tax agent (from other individuals (residents or non-residents)) (income from renting property to another individual, etc.);

foreign income;

income from the sale of investment asset;

income from involving in entrepreneurial activity and/or from conducting independent professional activities.

2. Amount of income from property transactions, income in the form of value of inherited or gifted taxable property, received by the taxpayer after December 1, 2024, is taxed by military levy at the 5 percent rate, regardless of indication of such income in the annual property status and income tax declaration for 2024.

Minimum tax liability

Paragraph 67¹ Sub-section 10 Section ХХ "Transitional provisions"of the Code

Law of Ukraine № 4015-IХ as of 10.10.2024 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine on ensuring balanced budget revenues during the period of martial law”

Calculating the minimum tax liability for 2025 and subsequent years, the coefficient "K" defined in Sub-paragraphs 38¹.1.1 and 38¹.1.2 of Paragraph 38¹.1 Article 38¹of the Code is applied with a value of 0.057.

Paragraph 74 Sub-section 10 Section ХХ "Transitional provisions"of the Code

Amount of the minimum tax liability is determined according to Sub-paragraphs 38¹.1.1 and 38¹.1.2 of Paragraph 38¹.1 Article 38¹of the Code and cannot be less than 700 UAH per 1 hectare, and for land plots in area of ​​which the share of arable land is at least 50 percent is 1400 UAH per 1 hectare.

Single contribution to obligatory state social insurance

Law of Ukraine № 4059-IX as of 19.11.2024 “On the State budget of Ukraine for 2025”

Obligation to pay the single social contribution for oneself on a general basis was renewed in 2025 for individuals-entrepreneurs, individuals involved in independent professional activities and farm members.

Individuals-entrepreneurs – single tax payers determine base for accruying single social contribution independently, not exceeding the maximum base for accruying single social contribution. In this case, amount of the single social contribution must be not less than the minimum insurance contribution.

In 2025 – from 1760 UAH to 35200 UAH.

Individuals-entrepreneurs, except for single tax payers, persons involved in independent professional activities, farm members – pay single social contribution in the amount of 22 percent of the amount of income (profit) received from relevant activity. At the same time, amount of the single social contribution must be not less than the minimum insurance contribution (1760 UAH in 2025) for month in which income (profit) was received.

Part 14¹ Article 8 of the Law of Ukraine "On collection and accounting of single social contribution to obligatory state social insurance"

Law of Ukraine № 4113-IХ 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”

For the Diia City residents procedure for applying relevant single social contribution rate for income payment to the taxpayers – specialists resident of the Diia City has been clarified:

single social contribution in the amount of the minimum insurance contribution from the specified income is paid by the Diia City resident, starting from the calendar month following the calendar month in which payer acquired status of the Diia City resident;   

it is established that until December 31 of the calendar year following the calendar year in which tax agent acquired status of the Diia City resident under special conditions (according to Part 3 Article 5 of the Law of Ukraine “On stimulating development of digital economy in Ukraine”), single social contribution in the amount of the minimum insurance premium is paid from income paid to specialists of the Diia City resident in the calendar month in which they did not meet requirement of having average number of employees and gig specialists of more than 9 people. If after this deadline, such tax agent – Diia City resident continues to fail to meet the specified requirement, then such tax agent is obliged, within a month, to independently accrue and pay (transfer) at own expense single social contribution at the 22 percent rate on income of specialists of the Diia City resident paid during the last three months, taking into account already paid amounts of single social contribution.

From January 1, 2025, the Law of Ukraine “On state regulation of the production and circulation of ethyl alcohol, alcohol distillates, alcoholic beverages, tobacco products, liquids used in electronic cigarettes, and fuel” expires, except for Article 8 of the Law, which will be in force until the date of entry into force and entry into force of Article 33 of the Law of Ukraine № 3817-IX as of 18.06.2024 “On state regulation of the production and circulation of ethyl alcohol, alcoholic distillates, bioethanol, alcoholic beverages, tobacco products, tobacco raw materials, liquids used in electronic cigarettes and fuel” (hereinafter – Law № 3817)

Main innovations of the Law № 3817:

Functioning of State registers

It is planned to create and function:

Unified register of licensees for production and circulation of ethyl alcohol, alcohol distillates, alcoholic beverages, tobacco products, tobacco raw materials and liquids used in electronic cigarettes;

Unified register of licensees and places of fuel circulation;

Unified register of equipment;

Unified register of storage places;

Electronic register of business entities using ethyl alcohol for production of chemical and technical products, perfumery and cosmetic products, and vinegar from the food raw materials.

Retail sale of the liquefied hydrocarbon gas in cylinders for household needs of the population and other consumers

Retail sale of the liquefied hydrocarbon gas in cylinders for the household needs of population and other consumers from specialized vehicles for transporting cylinders with liquefied hydrocarbon gas:

is permitted if licensee has a place of the retail fuel sale, in which gas filling stations / gas filling points / intermediate warehouses of liquefied hydrocarbon gas cylinders / specialized gas sales stores are located, and information on the state license plates of specialized vehicles for transporting liquefied hydrocarbon gas cylinders, from which retail sale of the liquefied hydrocarbon gas in cylinders for the household needs of population and other consumers will be carried out, is entered into the Unified register of licensees and places of fuel circulation;

is carried out with obligatory use of registrars of settlement operations, information about which is entered into the Unified register of licensees and places of fuel circulation.

hanges to the licensing procedure

Section VII (except for Paragraphs 22, 23 and 25 of Part 2 Article 46, Article 49) of the Law № 3817 on Licensing enters into force, according to which it is provided for:

list of licensing authorities and types of licenses, where a separate license is granted for each type of economic activity, except for cases provided for by the Law № 3817:

right to produce ethyl alcohol, alcohol distillates, bioethanol, alcoholic beverages, tobacco products, liquids used in electronic cigarettes, fuel, right to grow tobacco and right to ferment tobacco raw materials for the wholesale of ethyl alcohol, alcohol distillates, alcoholic beverages, tobacco products, liquids used in electronic cigarettes, fuel;

right to the retail sale of alcoholic beverages, tobacco products, liquids used in electronic cigarettes;

right to the retail fuel sale and right to store fuel, right to store fuel exclusively for the own consumption needs and/or industrial processing;

right and procedure for obtaining license for conduction of relevant type of economic activity, including licenses granted automatically;

for the first time, introduction of licensing for right to grow tobacco and for right to ferment tobacco raw materials;

making decisions on granting license and/or decisions on refusing to grant license for right to conduct relevant type of economic activity;

grounds for the licensing authority to make a decision to terminate license for right to conduct relevant type of economic activity have been established and their list has been significantly expanded compared to the list of grounds for license cancellation that was in effect until January 1, 2025;

indefinite validity of licenses issued from January 1, 2025 has been established;

cost of licenses has been established taking into account the minimum wage established by the law as of January 1 of the reporting (tax) year;

licensing authority has to inform business entities, annually, by January 1 of the reporting (tax) year, on its official website, about the cost of licenses for right to conduct relevant types of economic activity for the reporting (tax) year/quarter, calculated taking into account the minimum wage established by the law as of January 1 of the reporting (tax) year;

obligation of the business entity to pay the next annual fee or quarterly part of the annual fee for granted license for right to conduct relevant type of economic activity before the beginning of each subsequent annual (quarterly) period and to notify relevant licensing authority about payment of the next payment for license in paper or electronic form;

formation by the licensing authority of licensing cases in terms of granted licenses for right to conduct relevant type of economic activity.

Introduction of basic requirements for import to the customs territory of Ukraine, export out of the customs territory of Ukraine of tobacco raw materials, tobacco products, liquids used in electronic cigarettes, as well as components from which tobacco products are made, and import to the customs territory of Ukraine and export out of the customs territory of Ukraine of fuel

Norms related to requirements for the availability of appropriate licenses for carrying out import to the customs territory of Ukraine, export out of the customs territory of Ukraine of tobacco raw materials, tobacco products, liquids used in electronic cigarettes, as well as components from which tobacco products are produced, and import to the customs territory of Ukraine and export out of the customs territory of Ukraine of fuel come into force, according to which:

1)  Import to the customs territory of Ukraine:

tobacco raw materials – carried out by business entities with a license for right to produce tobacco products;

unfermented tobacco raw materials – carried out by business entities that carry out fermentation of tobacco raw materials, provided that they have a license for right to ferment tobacco raw materials and exclusively for fermentation of tobacco raw materials and their subsequent sale (transfer) to manufacturers of tobacco products or for the subsequent export of fermented tobacco raw materials outside the customs territory of Ukraine;

tobacco products – carried out by business entities if it has a license for right to wholesale of tobacco products or for right to retail sale of tobacco products, or for right to retail sale of liquids used in electronic cigarettes;

liquids used in electronic cigarettes – carried out by business entities with a license for right to wholesale of liquids used in electronic cigarettes, or for right to retail sale of tobacco products, or for right to retail sale of liquids used in electronic cigarettes.

Export outside the customs territory of Ukraine:

tobacco raw materials – carried out by business entities with a license for right to produce tobacco products or for right to grow tobacco, or for right to ferment tobacco raw materials;

tobacco products and liquids used in electronic cigarettes – carried out by business entities with a license for right to manufacture tobacco products, for right to manufacture liquids used in electronic cigarettes, respectively, and in the case of returning goods (products) previously imported to the customs territory of Ukraine or placing tobacco products and liquids used in electronic cigarettes under the customs re-export regime with a license for right to wholesale of tobacco products or for right to retail sale of tobacco products, or for right to wholesale of liquids used in electronic cigarettes, or for right to retail sale of liquids used in electronic cigarettes, respectively.

Import to the customs territory of Ukraine or purchase in the customs territory of Ukraine of cigarette paper belonging to commodity heading 4813 according to Ukrainian classification of the foreign economic activity products (except for commodity subcategory 4813 10 00 00), filters for industrial production of cigarettes – acetate filter sticks (tubes made of cellulose acetate fibers, covered with cigarette paper), belonging to commodity subcategory 5601 22 90 00 according to Ukrainian classification of the foreign economic activity products (except for filters as finished products, which are intended for sale to end consumers in separate consumer packaging and cannot be used for industrial production of cigarettes) are carried out only by business entities that have a license for right to produce tobacco products. Such goods (products) are imported to the customs territory of Ukraine or purchased in the customs territory of Ukraine by business entities that have a license for right to produce tobacco products, without right to further sell them in the customs territory of Ukraine;

2) I mport to the customs territory of Ukraine and export out of the customs territory of Ukraine of fuel are carried out if business entity carrying out relevant operations has a license for right to produce fuel or for right to store fuel, or for the to store fuel exclusively for the own consumption needs and/or industrial processing, or for right to wholesale of in fuel, or for right to retail sale of fuel.

Placing fuel under the customs regimes of import, re-import, export, processing in the customs territory, processing outside the customs territory is carried out by declaring it according to procedure established by the Customs Code of Ukraine, and if the business entity has a valid license for right to produce fuel or for right to store fuel, or for right to store fuel exclusively for the own consumption needs and/or industrial processing, or for right to wholesale of fuel, or for right to retail fuel sale.

Introduction of additional requirements for production of ethyl alcohol, alcoholic distillates, bioethanol and alcoholic beverages, features of handling irreparable defects formed during production process, as well as determining conditions for handling alcoholic distillates obtained as a result of selection of alcohol from alcoholic beverages for their dealcoholization

1. Production:

1) ethyl alcohol and bioethanol is carried out by business entities that have:

flange connections and/or connecting elements of flow meters of ethyl alcohol must be equipped with closed-type electromagnetic valves, which in the absence of a control signal have closed position;

storage places for ethyl alcohol, bioethanol, registered in the Unified register of storage places

2) ethyl alcoholic distillates is carried out by business entities that have storage places for alcoholic distillates registered in the Unified register of storage places

3) cognac alcohol is carried out by business entities that have: a license for right to produce alcohol distillate, full technological cycle of production of Ukrainian cognac and alcoholic beverages using cognac technology, including smoking and aging, qualified specialists and are provided with special containers for aging ethyl alcohols.

license for right to produce alcoholic distillate, carry out grape processing and production of grape wine materials, have qualified specialists and their own production facilities for production of cognac ethyl alcohol, and are also provided with oak containers or stainless or enameled containers with oak rivets for aging cognac ethyl alcohol.

4) Ukrainian cognac is produced by blending cognac spirits of Ukrainian and/or foreign origin (exclusively for ordinary Ukrainian cognacs), without any restrictions on the proportion of their use in production, aged for at least three years in oak containers or stainless or enameled containers with oak rivets. Period (term) of post-blending rest of Ukrainian cognacs is determined by the business entity’s decision.

5) ethyl alcohol, alcoholic distillates, bioethanol and alcoholic beverages, for production of which ethyl alcohol and/or alcoholic distillates are used, is carried out subject to the entry of storage places of ethyl alcohol, alcoholic distillates, bioethanol in the Unified register of storage places;

6) alcoholic beverages is carried out by business entities that have a license for right to produce alcoholic beverages and full technological cycle of production of relevant alcoholic beverages;

7) grape spirit distillate with right to sell it as a raw material to other business entities that have a license for right to produce ethyl alcohol, spirit distillates or alcoholic beverages, is carried out by business entities with a license for right to produce spirit distillates;

8) ethyl alcoholic distillates, production and bottling of alcoholic beverages into consumer containers, small distillate production is carried out on the basis of a license for right to produce alcoholic beverages, without obtaining license for right to produce alcoholic distillates. Use of purchased alcoholic distillates by small distillate productions for production of ethyl alcoholic beverages is prohibited.

2. It is prohibited to sell bioethanol without denaturing it with gasoline (1 - 10 percent) or ethyl tert-butyl ether, content of which meets requirements of technical regulations, except for bioethanol produced for export outside the customs territory of Ukraine, requirements for denaturing which are determined by the terms of concluded foreign economic agreement (contract).

3. For production of alcoholic beverages for sale in Ukraine, ethyl alcohol corresponding to the commodity subcategory 2207 10 00 90 according to Ukrainian classification of the foreign economic activity products, alcoholic distillates corresponding to the commodity position 2208 according to Ukrainian classification of the foreign economic activity products, which are obtained exclusively from agricultural products and have status of Ukrainian goods (products) according to the Customs Code of Ukraine, other alcoholic distillates in cases provided for by this Law, and other alcoholic beverages may be used. Use of other types of ethyl alcohol for production of alcoholic beverages is prohibited.

4. Irreparable defect that occurred during the production process:  

alcoholic beverages, at the business entity’s choice, are sent for industrial processing or for disposal as waste according to procedure specified by the Law of Ukraine "On waste management". Industrial processing of irreparable production defects is carried out exclusively by the business entities that have a license for right to produce ethyl alcohol. Producers of ethyl alcohol and alcoholic beverages keep separate records of treatment of irreparable defects.

alcoholic beverages and alcohol-containing liquids formed at various stages of the ethyl alcohol production, including bioethanol, which do not meet requirements of the manufacturer's regulatory and/or technological documentation, are transferred for industrial processing according to the procedure determined by the central executive body that ensures formation and implementation of the state financial policy.

5. Business entities that obtain ethyl alcoholic distillate as a result of full or partial removal of ethyl alcohol from alcoholic beverages obtained as a result of full or partial fermentation of wort, in order to reduce their alcohol content (dealcoholization), are not required to obtain a license for right to produce ethyl alcoholic distillate.

Ethyl alcoholic distillate obtained as a result of complete or partial removal of ethyl alcohol from alcoholic beverages obtained as a result of complete or partial fermentation of wort, in order to reduce their ethyl alcohol content (dealcoholization), may be used by the business entity that has a license for right to produce such alcoholic beverages:

1) for own consumption (own production and technological needs);

2) for the production of other alcoholic beverages;

3) for sale (alienation) to other business entities that have a license for right to produce ethyl alcohol, alcoholic distillates or alcoholic beverages.

Part 1 Article 38 of the Law 3817

Law of Ukraine № 4115-IХ as of 04.12.2024 "On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding revision of the excise tax rates on tobacco products"

List of equipment for preparation or processing of tobacco, tobacco raw materials and industrial production of tobacco products with automated machines (mechanisms) designed for the production of cigarette filters and cigarette cartridges has been added.

Adopted in the second reading and sent for signature to the President of Ukraine

Sub-paragraph 14.1.106 Paragraph 14.1 Article 14 of the Code

Law of Ukraine № 4115-IХ as of 04.12.2024 "On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding revision of the excise tax rates on tobacco products"

(enters into force on January 1, 2025 but not earlier than its publication date)

Retail price of excisable products for which the maximum retail prices have been established cannot be less than the minimum excise tax liability for the excise tax payment on tobacco products multiplied by a coefficient of 1.45.

It is envisaged that the controlling authority will not accept Declarations on the maximum retail prices for tobacco products if the price indicated in such declarations does not meet the specified requirements, as well as application of financial sanctions for the retail sale of tobacco products at prices lower than the above-specified retail price level.

Sub-paragraph 14.1.144² Paragraph 14.1 Article 14 of the Code

Introduction of a new term "non-alcoholic beer" which means a carbonated foamy beverage with ethyl alcohol content of 0.5% vol. or less, obtained as a result of fermentation of beer wort with brewer's yeast, falling under heading 2202 according to Ukrainian classification of the foreign economic activity products.

Article 39¹ of the Code

Application peculiarities of the exchange rates calculating the excise tax amounts, namely for tobacco products, the official exchange rate of Ukraine to foreign currency, established by the National Bank of Ukraine, valid at 00 hours 00 minutes on the first day of the calendar half-year preceding the half-year in which the excise tax is levied, is applied to:

- purchase of the excise tax marks (until January 1, 2026);

- formation of a unique identifier (from January 1, 2026);

- sale of tobacco products produced in the customs territory of Ukraine or submission of customs declaration;

- accrual of the excise tax liabilities on tobacco raw materials and tobacco waste.

Paragraph 214.6
Article 214 of the Code

Reducing amount of the total losses and waste of unfermented tobacco raw materials from 10% to 5% used for the production of fermented tobacco raw materials.

Sub-paragraphs 215.3.2, 215.3.3 and 215.3.3¹
Paragraph 215.3
Article 215 and  Paragraph 17 Sub-section 5 Section ХХ "Transitional provisions" of the Code

Rates on tobacco products, tobacco and industrial tobacco substitutes are determined in units of Euros.

Paragraph 220.5  
Article 220 of the Code

Clarification of reasons for non-acceptance by the controlling authorities of declaration on the maximum retail prices for excisable products.

Sub-paragraph 222.1.2 Paragraph 222.1
Article 222 of the Code

Determining the excise tax amounts, recalculation of the tax rates determined in Euros on the date of sale/import of products is introduced, taking into account the official exchange rate of Ukrainian currency to foreign currency established by the National Bank of Ukraine, which was in effect at 00 hours 00 minutes k on the first day of the calendar half-year preceding the half-year in which such tobacco products are sold/in which the customs declaration is submitted.

Paragraph 16¹ Sub-section 5 Section ХХ "Transitional provisions" of the Code

Anti-forstolling restrictions have been eased purchasing the excise tax marks and selling products before increase in the excise tax rates (temporarily for q period of the martial law in Ukraine, introduced by Decree of the President of Ukraine № 64/2022 as of 24.02.2022 “On introduction of the martial law in Ukraine”, approved by the Law of Ukraine № 2102–IX as of 24.02.2022 “On approval of Decree of the President of Ukraine “On introduction of the martial law in Ukraine”).

Paragraph 17 Sub-section 5 Section ХХ "Transitional provisions" of the Code

Introduction of increase in the excise tax rates on tobacco products, which are set in Euros, starting from 01.01.2025 to 31.12.2027, annual increase in the excise tax rates to bring them to the minimum level (excise tax rates are set in Euros per 1000 pcs., per 1 kg.).