Ukrainian President Volodymyr Zelenskyy has signed a law extending the military levy for another three years after the war ends. This document is one of the International Monetary Fund’s key requirements.
The changes pertain to the Tax Code of Ukraine, specifically to paragraph 16-1 of subsection 10 of section XX, “Transitional Provisions,” which regulate the collection of the military levy.
According to the bill’s summary, the document was returned to parliament on April 14 with the head of state’s signature.
Under the document, a separate special fund will be established in the Budget Code, into which funds from the military levy will be directed.
This draft law is one of the key requirements of the International Monetary Fund (the so-called “beacon”).
The military levy will remain in place for another three years so that the state has funds not only for the army but also for post-war reconstruction and the restoration of destroyed infrastructure.
Currently, the military levy is set at:
5% for individuals (for military personnel and employees of the security and defense sector—1.5% of income in the form of monetary allowances (excluding income exempt from the military levy);
10% of the minimum wage—for sole proprietors in Groups 1, 2, and 4;
1% of income—for single-tax payers in Group 3 (individual entrepreneurs and legal entities, excluding e-residents).
Why this is important
The adoption of Bill No. 15110 is part of the implementation of a package of ten critically important laws, the necessity of which for obtaining international financial support was previously emphasized by President Volodymyr Zelenskyy.
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