Key Taxation Changes Effective from October 1

The newspaper Voice of Ukraine (No. 173, dated September 3, 2025) published Law No. 4536-IX “On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine in Connection with the Adoption of the Law of Ukraine ‘On Integrated Prevention and Control of Industrial Pollution’ and for the Purpose of Improving Certain Provisions of Tax Legislation.”

The Law entered into force on October 1, 2025 (except for certain provisions).

Law No. 4536 introduces, among other things, amendments to the Tax Code of Ukraine (hereinafter – the “Tax Code”).

The key changes include:

• Personal income tax (PIT) deduction for housing rent expenses for combatants and persons with disabilities as a result of the war;
• Inclusion of prisoners of war among the persons for whom tax agents pay PIT and the military levy;
• Quarterly reporting on PIT, military levy, and unified social contribution (USC) for individual entrepreneurs and self-employed persons for their employees; for notaries and entrepreneurs – on exchange transactions;
• Extension until January 1, 2028 of the cash accounting method for VAT for suppliers of energy, water, coal, heat, and utilities;
• VAT exemption for transactions involving the free transfer of melioration infrastructure facilities to water users until Ukraine’s accession to the EU;
• Land tax rates for mining enterprises: 8% (if valuation is available), 12% (if no valuation is available);
• For single tax payers of Group IV – reporting in the declaration of provided/received land plots, including under emphyteusis agreements;
• Possibility to reduce local tax rates during martial law;
• Special procedure for determining rent payments for oil and condensate from September 1, 2025, until the end of martial law;
• Requirement to submit copies of environmental tax declarations within 40 days after the reporting period for entities holding waste management permits;
• Use of data from the integrated environmental permit, including water use limits specified therein, when calculating the rent for special water use.