Rada extends military tax for 3 years after end of martial law

The Verkhovna Rada passed in the second reading and in its entirety bill No. 15110 on the extension of the military tax for three years after the end of the war, which is a structural benchmark of the new financing program with the International Monetary Fund (IMF).

According to a live broadcast of the session, 257 MPs supported the draft law, with two against and four abstentions.

"The adoption of the bill will allow the state budget of Ukraine to attract over UAH 140 billion during the three years following the year in which martial law is terminated or canceled," Finance Minister Serhiy Marchenko said while presenting the bill in the Rada.

MPs also voted with 250 in favor to send the adopted law for immediate signature by President of Ukraine Volodymyr Zelenskyy.

According to the explanatory note to bill No. 15110, it provides for the extension of the military tax rules introduced during martial law in Ukraine. Specifically, this applies to individuals at a rate of 5%; for individual entrepreneurs (FOPs) on the simplified tax system in groups 1, 2, and 4 at 10% of one minimum salary as of the first day of the current month (UAH 850 in 2026); and for third-group unified tax payers (FOPs and legal entities, excluding e-residents) at 1% of income. These rates will remain in effect for three years following the year in which martial law is terminated or canceled in Ukraine.

As reported, four structural benchmarks that Ukraine was required to meet by the end of March 2026 under the IMF's Extended Fund Facility (EFF) program were considered unfulfilled. The Rada was to adopt tax changes concerning the cancellation of VAT exemptions for simplified tax payers, taxation of digital platforms, taxation of all parcels, and the permanent application of the military tax. Although the Cabinet of Ministers approved and submitted three bills on March 30 (regarding digital platforms, parcels, and the military tax), one bill regarding VAT for FOPs remained under revision.

The Verkhovna Rada Committee on Finance, Tax and Customs Policy recommended the bill on Monday, April 6.