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taxpayers in 2025

What tax changes await taxpayers in 2025?

1/17/2025
taxpayers in 2025

Allow us to provide you with a brief summary of the key information on a range of laws that were implemented at the end of 2024, as well as laws on tax changes, some of which will come into effect from 1 January.

The new regulations will require monthly submission of unified PIT, UST and ERU reporting from the year 2025. In accordance with the amendments to Article 176 of the Tax Code introduced by Law No. 4015, as from January 2025, tax agents will be required to submit unified personal income tax, military duty (MD) and unified social contribution (USC) reports on a monthly basis.

Reporting for the fourth quarter of 2024 remains in effect, and the initial monthly report is due in January 2025. In February 2025, tax agents will be required to submit two reports: a quarterly report for the fourth quarter of the year 2024 (by the end of January) and a monthly report for January 2025. The following military duty changes will be effective from 2025, according to Law No. 4113.

  • The start of the military duty for all single tax payers (with the exception of Group 4 legal entities) has been postponed to 1 January 2025.
  • Individuals under the general taxation system will remain subject to the 1.5% rate for the 2024 tax year.
  • Individual entrepreneurs on sick leave, vacation, registered in the occupied territories or territories of hostilities, and mobilised individual entrepreneurs will be entitled to certain benefits.
  • The 5% rate does not apply to income that is subject to annual declaration for 2024.
  • Furthermore, the ST taxpayers are allowed to credit the paid UST when calculating the minimum tax liability.

Residents' taxation in Diia City

As of 1 January 2025, a taxation system will come into effect for residents of Diia City. The taxation measures include the following: 

  • A reduced personal income tax rate of 5% will be applied from the month following the month of acquisition of the resident status.
  • Income earned in the month that a person acquires their status is taxed at a basic personal income tax rate. This is set at 18% of the taxable income.

Environmental tax

From 1 January 2025, environmental tax will be payable at the full rate, as the reduced rate of 90% was only effective until the end of the year 2024. In addition, with effect from 1 January 2025, amendments to transactions with non-residents registered in low-tax jurisdictions or legal forms determined by the CMU will come into force. Amendments to the Tax Code were introduced by Law No. 3813 and clarify the provisions of Article 39.

The taxation of financial institutions

By Law No. 4015, effective from 2025: 

  • The Law establishes a basic corporate income tax rate of 25% for financial institutions (with the exception of insurers).
  • It also clarifies the rules for the taxation of adjusted profits of controlled foreign companies and advance payments for exchange offices.

Excise tax on cigarettes

From 1 January 2025, new excise tax calculation rules will be introduced. The new rules will stipulate that the minimum share of excise tax in the price of cigarettes and cigarettes should be 60% of their weighted average retail price.

Increase to fuel excise tax

In accordance with Law No. 3878, excise tax on fuel is to be increased on a yearly basis from 1st January until it reaches the minimum levels set by European directives by the year 2028.

With effect from the 1st January 2025, the following changes to the privileges for aircraft manufacturers will be implemented:

  • The VAT exemption on the imports of goods for the aircraft industry will be cancelled.
  • The land tax exemption for aircraft manufacturers will be cancelled, though certain facilities will be excluded from this.
  • VAT-free import of UAVs
  • The VAT-free import privileges for UAVs and other military goods will remain in effect until the end of 2025. Income declaration on a voluntary basis

The deadline for payment of the one-off income declaration fee has now passed.

  • The second instalment is due 1 May 2024.
  • Third instalment - by 1 May 2025.

Financial penalties for financial agents

Paragraph 53-1 of Subsection 10 of Chapter XX of the Tax Code establishes that for violations committed by financial agents and account holders until 31 December 2024 inclusive, the penalties (financial sanctions) outlined in paragraphs 118-1.3 - 118-1.8 of Article 1181 of this Code shall not apply. For violations committed between 1 January and 31 December 2025, the applicable financial penalties shall be equivalent to 0.5 of the relevant fine. The amount of the coefficient for determining the PMO for 2025 is set at 0.057. This is to be used for the calculation of the 2025 PMO.
Please also find below details of penalties for failure to report CFCs. In accordance with Law No. 4113, clause 72 of subsection 10 of Chapter XX of the Tax Code of Ukraine was amended to provide that no penalties will be imposed on an auditor for violations committed from 1 January 2022 and during the period of martial law in Ukraine until the last calendar day (inclusive) of the calendar month in which martial law is terminated or cancelled, provided that the auditor fulfils the obligations under Article 39-2 of the Tax Code within six months after the termination or cancellation of martial law.