Ukraine's Rada extends military tax for 3 years after martial law ends

MOSCOW. April 7 (Interfax) - The Verkhovna Rada adopted in its second reading and as a whole a bill extending the military tax for three years after the end of martial law that is a structural benchmark for the new International Monetary Fund (IMF)'s financing program, Ukrainian media reported on Tuesday.

"This will allow over UAH 140 billion to be attracted to Ukraine's state budget over the three years following the year in which martial law is terminated or lifted," media quoted Ukrainian Finance Minister Sergei Marchenko, who introduced the bill in the Rada, as saying.

The parliament members submitted the adopted law "for immediate signature" to Ukrainian President Vladimir Zelensky.

The law provides for the extension of the validity of the rules for applying the obligation to pay military tax, which were introduced for the period of martial law in Ukraine, namely for individuals in the amount of 5%, for taxpayers who are individual entrepreneurs (IE) - payers of a single tax of the first, second and fourth groups - 10% based on one minimum salary on the first day of the current month (in 2026 - UAH 850), payers of a single tax of the third group (IE and legal entities) (except for electronic residents (e-residents) - 1% of income, for three years following the year in which martial law in Ukraine is terminated or canceled, the explanatory note said.