The Government of Ukraine has developed a draft law that provides significant tax benefits for entrepreneurs operating in frontline areas. The document, prepared by the Ministry of Social Policy, proposes to compensate 50% of the unified social contribution (USC). This is indicated in the relevant draft law.
The draft law aims to support over 4,100 business entities registered in combat zones. According to the State Tax Service, these enterprises pay about 255 million UAH in USC each month and provide jobs for over 54 thousand people.
Main risks of business in frontline territories
Without state support, entrepreneurs in these regions face serious challenges:
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Decrease in demand for goods and services due to martial law.
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Logistics problems complicating supplies.
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Additional costs for ensuring the safety of employees and property.
These factors threaten the stability of local economies, increase unemployment, and reduce tax revenues.
What benefits are offered to entrepreneurs in frontline territories
The draft law proposes to amend the legislation on USC, introducing a mechanism to compensate half the contribution amount for entrepreneurs. The procedure and conditions for compensation will be determined by the Cabinet of Ministers. The ministry notes that the adoption of the document is urgent, as the situation in frontline territories requires quick decisions.
What is USC?
The unified social contribution is a mandatory payment to the state social insurance system. In 2025, considering the minimum wage of 8000 UAH, the parameters of USC are as follows:
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Minimum contribution – 1760 UAH.
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Maximum assessment base – 160,000 UAH (20 minimum wages).
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Maximum contribution amount – 35,200 UAH.
In 2026, after the increase in the minimum wage to 8647 UAH, the minimum contribution will rise to 1902 UAH monthly. These indicators affect the costs of businesses, especially in wartime, when profits have significantly decreased.
Earlier we wrote about what tax benefits the military received.