Legislative Changes in Ukraine
President Volodymyr Zelenskyy has signed Law No. 15110, which extends a special military levy for a period of three years following the end of martial law. This move, passed by Ukraine's parliament, the Verkhovna Rada, on April 7 with 257 deputies voting in favor, is a key fiscal measure for the country's future. To implement the law, a separate special fund will be established within the Budget Code.
The adoption of Law No. 15110 was a necessary condition for Ukraine to receive financial assistance from the International Monetary Fund (IMF). The IMF's Executive Board has already approved a new $8.1 billion funding program for Ukraine spanning 2026 to 2029. According to Finance Minister Serhiy Marchenko, the new rules are expected to channel over 140 billion hryvnias into the state budget during the three-year post-war period.
Tax Changes and Their Impact
Under the new terms, individual taxpayers will pay 5% of their income. For sole proprietors (FOPs) in the first, second, and fourth tax groups, a fixed monthly amount of 10% of the minimum wage will apply, projected to be approximately 865 hryvnias in 2026. FOPs and companies in the third group will pay 1% of their income.
On April 8, the Verkhovna Rada also preliminarily approved draft law No. 15111-d, which is part of a package of three tax bills agreed upon by Ukraine's Cabinet of Ministers. These tax system reforms are designed to help stabilize the national economy during the challenging post-war recovery phase. This legislative package underscores the government's broader strategy to secure fiscal stability as the country rebuilds.
Law No. 15110 represents a crucial step for ensuring Ukraine's financial stability in the post-war recovery period. Extending the military levy will not only help the country secure necessary funds but will also support meeting IMF conditions for receiving international financial assistance. This demonstrates the government's efforts toward economic stabilization and supporting the state budget during a difficult time.
In addition to the recent extension of the military levy, the Ukrainian parliament has also approved a law that ensures all proceeds from this levy will be directed towards strengthening the Armed Forces. This decision is part of a broader effort to enhance military funding during the recovery phase, emphasizing the government's commitment to national defense. For more details on this legislative move, you can read about how military levy funds will be allocated.