From December 1, 2024, Ukrainians will experience a decrease in their legal income due to an increase in the military levy to 5%. This provides for a new law signed by President Volodymyr Zelenskyi on November 28, which was adopted by the Verkhovna Rada on October 10. People's deputy Nina Yuzhanina talked about the changes in taxation on the air of the Kyiv24 TV channel.
According to the new legislation, the military levy on the legal income of Ukrainians increases from 1.5% to 5%. This applies to all types of income that citizens receive at work as employees, as well as interest from deposits in banks.
"Absolutely, all income that you legally receive, be it salary or accrued interest on deposits, will be taxed at the rate of the military levy, not 1.5%, but 5%," Yuzhanina said.
Nardepka also drew attention to the fact that Ukrainians should be prepared for a decrease in "net" income. For example, if citizens receive winter support in the amount of one thousand hryvnias from December 1, it will be a one-time benefit, but they will pay more taxes every month due to an increase in the military levy rate.
"When you go to receive a thousand hryvnias of aid, remember that at the same time withholding from your income increases," the deputy emphasized.
This law should enter into force on December 1, which will avoid technical problems with the calculation of taxes and salaries. However, it is worth noting that the transition period, which was supposed to last until November 29, has been removed, and the changes will take effect from next month.
This tax increase has become part of the government's strategy to finance defense needs, but it also creates some economic hardship for citizens who are already facing rising prices and inflation.
