Ukrainian President Volodymyr Zelensky signed Law No. 15110 on April 14, which extends the current military tax for three years following the end of martial law. The official document was published on the Verkhovna Rada’s website.
On April 7, the Ukrainian parliament approved this government bill, establishing the military tax rates as follows:
- 5% for individuals;
- 10% for individual entrepreneurs (FOPs) of the first, second, and fourth groups, calculated based on one minimum wage (850 UAH in 2026);
- 1% of income for FOPs in the third group, excluding electronic residents.
The law stipulates that these tax rates will remain in effect until the end of martial law and for three additional years thereafter. This legislative move aligns with the requirements set by the International Monetary Fund (IMF) for Ukraine to secure funding.
In November 2025, Ukraine and the IMF agreed on parameters for a new four-year extended financing program amounting to $8.1 billion. This program includes 16 structural benchmarks that the government and parliament must fulfill, along with four mandatory prior actions necessary for the program’s initiation.
In December 2025, the Ministry of Finance proposed a bill requiring individual entrepreneurs with annual incomes exceeding 1 million UAH to pay VAT. Following public backlash, the Ministry began drafting a revised version that would raise the threshold to either 2 million or 4 million UAH annually, as reported by Bloomberg.
On February 14, Prime Minister Yulia Svyrydenko announced that the IMF had agreed to waive prior conditions for the new credit program, including the introduction of VAT for FOPs, customs duties on parcels, taxes for digital platforms, and the continuation of the military tax.
On February 27, the IMF approved a new extended financing program for Ukraine, designed for four years and totaling $8.1 billion, aimed at partially covering the country’s budget deficit.
On March 3, Ukraine received the first tranche of $1.5 billion under this new four-year program through the Extended Fund Facility (EFF).
However, on March 10, the Verkhovna Rada failed to pass a bill regarding the taxation of income from digital platforms, which is one of the IMF’s requirements. The parliament must approve several measures to secure macro-financial assistance.
Earlier, Suspilne reported on concerns regarding the potential loss of IMF funding due to the ongoing parliamentary crisis.
Ukraine's recent legislation to extend the military tax aligns with IMF requirements for funding. The new law, signed by President Zelensky, will maintain current tax rates during and after martial law, as the country seeks to stabilize its economy amid ongoing financial negotiations.