Under martial law and in order to overcome problems with filling the state budget, the Ukrainian government is considering the possibility of introducing a military levy for individual entrepreneurs (IEPs).
Currently, military duty is paid only from employees' wages and amounts to 1.5%. Sole proprietors do not pay this duty, but the situation may change with the adoption of a new bill.
Today, there are over 2 million registered individual entrepreneurs in Ukraine. Moreover, the record increase occurred in the last 12 months (from February 1, 2023 to February 1, 2024) - about 315 thousand.
Individual entrepreneurs pay a single tax, single income tax, and VAT (general taxation system) on their income.
Why is the Social Security Disability Insurance (SSI) paid voluntarily during the martial law period and for 12 months after its end, provided that the length of service for this period will not be accrued in case of non-payment? This norm has been used by many entrepreneurs, even those located in regions where there are no military operations. Not a completely logical initiative.
The military levy will be increased for individuals to 5%, which will be sent to the state budget of Ukraine for military activities.
It is clear that the issue of introducing military service for individual entrepreneurs is also very interesting for filling the budget.
