Why This Law Matters
On September 2, 2025, the President of Ukraine signed Law No. 4536-IX, which amends the Tax Code of Ukraine in line with the adoption of the Law “On Integrated Prevention and Control of Industrial Pollution” (draft No. 13157).
The law aims to:
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streamline administration of the environmental tax, rent for subsoil use, and rent for water use;
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introduce targeted relief for entrepreneurs and war-affected citizens;
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bring Ukraine’s taxation framework closer to EU practices.
Key Tax Amendments
1. Support for Individual Entrepreneurs and Self-Employed
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Return of quarterly reporting for PIT (personal income tax) on employees.
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Exemption from paying Unified Social Contribution (USC) for themselves if the minimum insurance premium is already covered by an employer — including social benefits for mothers with children under 3.
2. Social Protection Measures
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New PIT deductions for housing rental expenses of:
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war veterans (combatants),
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people with disabilities due to the war.
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Extension of PIT obligations to non-resident prisoners of war — paid by the relevant detention institutions.
3. Sectoral Adjustments
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Extension of the cash method for utilities (electricity, water, drainage) until January 1, 2028 (previously 2026).
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Introduction of the cash method for oil and condensate rent payments during martial law + 3 months after.
4. Agricultural Export Duties
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Introduction of a 10% export duty on soybeans and rapeseed until 2030.
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Gradual annual reduction by 1 percentage point after 2030, reaching 5%.
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Exemption applies to self-grown products.
5. Excise Trade Requirements
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Retailers of alcohol, tobacco, and fuel must ensure an average wage equal to at least 2 minimum wages for their employees.
Impact on Business and Citizens
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Entrepreneurs: Lower reporting burden and reduced USC liability.
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Agriculture exporters: Adjusted duties on soy and rapeseed will encourage processing inside Ukraine while balancing export competitiveness.
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War veterans and people with disabilities: Direct housing support through PIT deductions.
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Energy and utilities: Longer use of the cash method simplifies tax obligations for providers.
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Retail sector: Wage requirement ensures social protection but raises compliance costs for small traders.
Conclusion
Law No. 4536-IX represents a comprehensive update to Ukraine’s tax framework — combining environmental alignment, social protection, and business regulation. While some measures ease the burden on entrepreneurs and vulnerable groups, others introduce stricter requirements for exporters and excise retailers.
With its provisions stretching until 2028 and beyond, the law shapes a long-term vision of Ukraine’s tax policy in line with European integration and wartime economic resilience.
