On November 28, President of Ukraine Volodymyr Zelensky signed Law No. 11416-D, which provides for a significant increase in taxes in the country. The document will be published on November 30, and it will come into force on December 1. This decision has caused widespread resonance among experts, business and society, because it has significant consequences for the Ukrainian economy.
- Increasing military gathering:
- The rate increases from 1.5% to 5% for all citizens except servicemen.
- New taxes for FOPs:
- FOP I, II and IV groups will pay 10% of the minimum wage.
- Group III FOP - 1% of income.
- Income taxes for financial institutions:
- Banks will pay 50%, financial companies (except for insurance) - 25%.
- Advantages for gas stations (gas stations) and currency exchange points are introduced.
- Monthly reporting:
- The monthly reporting on income or personal income tax (PIT) is mandatory.
- “National Cashbek”:
- Revenues from him are exempt from PIT in 2024–2025.
It is expected that the budget will receive an additional UAH 130-140 billion due to taxes raising the taxes. However, analysts predict an increase in the tax burden on business from 19.5% to 21-21.5%. This exceeds the level in neighboring countries, such as Romania (14.6%) and is approaching Ireland (22.6%), but without access to EU support that these states receive.
Economist Alexander Bondarenko warns that such changes can provoke investment reduction and growth of the shadow sector.
Representatives of European Business Association (EBA) are concerned about the lack of reforms in the fiscal authorities, high levels of corruption and increased administrative pressure on entrepreneurs.
"Increasing taxes without tax reform can lead to the opposite effect: closing business, reducing budget revenues and losing jobs," - says Miroslav Laba, EBA expert.
NBU First Deputy Chairman Kateryna Rozhkova also warns that an increase in income tax up to 50% can create problems with the capital of two state -owned banks, which will require billions of doses to capitalize them.
