The 0% rate applies exclusively to days of direct participation in combat
During martial law, a special tax procedure applies to the financial allowance of Ukrainian service members. Under certain conditions, defenders are entitled to an exemption from paying the 1.5% military tax. This is reported by the portal PromPolitInform, citing information from the Ministry of Defence of Ukraine.
According to the Tax Code of Ukraine, the military tax is not withheld from service members’ pay during their direct participation in activities ensuring national defense and repelling Russian armed aggression.
Conditions for Applying the Exemption
The 0% preferential rate is not applied automatically for the entire month, but only for the days of actual involvement in combat tasks. If a service member took part in such actions for part of a month, the exemption covers earnings for those specific days only.
For the remaining days of the reporting month when the service member was not involved in such tasks, the 1.5% military tax is withheld on a general basis.
The legal basis for receiving the exemption is verified by official documents and military orders. The final calculation depends on the actual circumstances of service.
Other Taxes and Social Contributions
The military tax is the only direct deduction from a service member’s take-home pay. However, personal income tax (PIT) is also levied on their allowance at an 18% rate.
A special compensation mechanism applies to PIT: all withheld amounts are fully redistributed back to compensate for income losses.
Additionally, a 22% single social contribution is calculated separately. Military units pay this contribution from their own budget, meaning it does not reduce the net pay received by service members.
Photo: Ministry of Defence of Ukraine
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