Mobilized individuals-entrepreneurs are exempted from paying taxes during their service: how to take advantage of the new rules

Self-employed individuals who have been mobilized or signed a contract for military service are exempted from paying taxes and filing reports for the service period. Relevant changes to the Tax Code (Law № 4505-IX) have entered into force.

Taxes that will not be paid:

- personal income tax,

- single tax

- military levy,

- single social contribution, if individual-entrepreneur has no employees.

Exemption is applied automatically based on data from the Unified State Register of Conscripts, Military Servicemen and Reservists (mobilization dates, conclusion of a contract, demobilization) from the first day of mobilization month or conclusion of a contract, but not earlier than February 24, 2022.

What should individual-entrepreneur do:

- if information about mobilization, contract or demobilization is already in Register – no application is required;

- if there is no data in Register, it is possible to submit application and copies of supporting documents to the Tax Service by oneself.

State Tax Service has consistently initiated resolution of tax questions of mobilized individuals-entrepreneurs and veterans and has created working groups in its territorial bodies. For convenience and opportunity to receive consultation regarding the new norms, all "hotlines" continue to work.

Contacts for self-employed defense servicemen and their families:

https://tax.gov.ua/others/kontakti/garyachi-linii-terorganiv-dps-dlya-virishennya-pitan-mobiliz

How exemption will work:

State Tax Service will not accrue advance single tax and military levy contributions for mobilization period or contract validity. If such amounts have already been accrued, they are subject to cancellation.

If individual-entrepreneur was excluded from Register of the single tax payers due to non-payment of tax obligations during mobilization or contract service, it will be automatically renewed.

Also, mobilized individuals-entrepreneurs/individuals involved in independent professional activities/farm members, if they do not belong to persons subject to insurance on other grounds, information about which is available in Register, have a right not to accrue, calculate and pay single social contribution for the entire period of their military service, including military service under a contract. 

In addition, during mobilization period of the single contribution payer or contract validity concluded with such person, accrued amounts of penalties and fines are subject to cancellation (write-off) for reporting periods up to and including the first day of month following the month in which the controlling authority received information about mobilization of the single contribution payer.

If individual-entrepreneur has employees, it is possible to authorize another person to pay the employees’ salaries. In this case, authorized person accrues single social contribution, and individual-entrepreneur can pay it within 180 days after demobilization without penalties.

Single social contribution reporting is submitted by the individual-entrepreneur within 150 days after demobilization, also without fines and penalties.

If violations occurred before the start of service or during it (untimely payment or reporting) – individual-entrepreneur is exempted from liability if such individual-entrepreneur fulfills obligations within the established deadlines after demobilization:

− reporting – up to 150 days,

− payment – up to 180 days.

For reference: Law of Ukraine № 4505-IХ as of 18.06.2025 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding expanding patients’ access to medicines subject to procurement by a person authorized to make procurements in the healthcare sector by concluding managed access agreements”.