These changes encompass tax reforms, new rules for conscription booking, pension adjustments, and updates to public holidays. The Cabinet of Ministers has approved these measures to streamline administrative processes, support the military, and enhance social welfare amid ongoing challenges.
Tax Increases
Military Levy Expansion
Starting December 1, the Ukrainian government has enacted a tax increase aimed at bolstering military funding. The military levy will become mandatory for individual entrepreneurs across various groups:
- Groups 1, 2, and 4: Entrepreneurs will be required to pay 10% of the minimum wage each month (currently 800 hryvnias).
- Group 3: Individual entrepreneurs will contribute 1% of their income.
- Military: The existing tax rate will remain unchanged.
New Taxes on Financial Institutions
The reform also introduces additional taxes targeting the financial sector:
- Excess Profit Tax on Banks: A 50% tax will be imposed on excess profits of banking institutions.
- Profit Tax for Financial Companies: Financial firms will be subject to a 25% profit tax.
These measures are designed to increase government revenue and support Ukraine's defense and economic stability.
Conscription Booking Reforms
New Booking Rules for Critical Enterprises
Effective December 1, Ukraine will implement revised rules for reserving employees in critical enterprises:
- Salary Requirement: Reserved employees must earn at least 20,000 hryvnias and must have been employed by May 18, 2024.
- Enterprise Responsibilities: Businesses must confirm their status as part of the critical infrastructure by February 28, 2025.
- Booking Process: Reservations for employees will now be managed exclusively through the "Diya" portal.
Objectives
These changes aim to prevent misunderstandings during customs clearance, streamline the booking process, and ensure that critical industries maintain operational integrity without undue interference.
Financial Assistance: "A Thousand from Zelensky"
One-Time Financial Aid
In December, all Ukrainians will be eligible to receive a one-time financial assistance of 1,000 hryvnias from President Volodymyr Zelensky. This initiative is part of the "National Cashback" program and is accessible through the "Diia" application.
- Eligibility: Open to all citizens, with parents receiving additional payments for each child.
- Distribution: Funds will be credited automatically to virtual accounts linked to the "Diia" platform, eliminating the need for manual applications.
Pension Adjustments
No Indexation This December
There will be no indexation of pensions in December 2024, meaning pension amounts will remain unchanged. The minimum pension continues at 2,361 hryvnias for individuals without work experience.
Pension Supplements for Age Milestones
However, pensioners reaching certain ages in December will receive supplements:
- 70 years old: +300 hryvnias
- 75 years old: +456 hryvnias
- 80 years old: +570 hryvnias
These supplements will be automatically credited without the need for pensioners to contact the Pension Fund office.
Public Holidays in December 2024
December is marked by several significant state and religious holidays:
- December 6: St. Nicholas Day and Day of the Armed Forces of Ukraine
- December 14: Day of the Chernobyl NPP Liquidator
- December 25: Christmas 2024 (celebrated in the new style)
- December 31 - January 1: New Year 2025
Cancellation of New Year Holiday
Due to the effects of martial law, the public holiday for New Year 2025 (falling on a Wednesday) will be canceled. However, employees are permitted to take one or more days off around the holiday dates to celebrate.
Additional Changes and Benefits
Pension Supplements
Pensioners who reach the specified ages will benefit from additional financial support, enhancing their quality of life and providing necessary financial relief during challenging times.
Support for Critical Infrastructure
The revised conscription booking rules ensure that critical enterprises can maintain their operations while fulfilling national defense requirements, thus balancing economic and security priorities.
Government's Strategic Vision
Deputy Minister of Economy and Trade Representative Taras Kachka emphasized the government's commitment to reducing bureaucratic burdens and digitizing licensing procedures:
“The cancellation of the licensing regime for agricultural products is necessary to avoid misunderstandings during customs clearance of exports. This move simplifies the conditions for doing business for exporters and aligns with our goals of enhancing transparency and efficiency in the agricultural export sector.”
Conclusion
The upcoming changes effective from December 1, 2024, reflect Ukraine's ongoing efforts to strengthen its defense capabilities, streamline economic processes, and support its citizens amidst the country's current geopolitical challenges. By implementing these tax reforms, conscription booking rules, financial assistance programs, and adjusting pension benefits, the Ukrainian government aims to foster a more resilient and efficient society poised to navigate the complexities of the present and future.
