On November 28, the Law No. 11416-d, amending Ukraine's Tax Code regarding taxation during martial law, came into effect. One of the key changes is an increase in the military tax rate for individuals from 1.5% to 5% on all types of income, including salaries, rental income, winnings, bank deposits, and other personal earnings. 

The 1.5% military tax rate remains unchanged for military personnel and employees of the Armed Forces of Ukraine (AFU), Security Service of Ukraine (SBU), Foreign Intelligence Service (SZRU), Ministry of Defense's Main Intelligence Directorate (GUR), State Border Guard Service, State Special Communications Service, State Transport Special Service, National Guard, and the State Guard Service of Ukraine (UDO). Individuals in these categories can submit supporting documents to their bank to apply the 1.5% rate instead of 5%. Without such documents, the 5% rate will automatically apply. 

We’ll explain how these legislative updates impact our key products for individual clients: the Wincard (a debit card with cashback) and deposits. 

How does the Wincard cashback change? 

Our clients will continue to receive 2% cashback on transactions. However, the increase in the military tax rate from 1.5% to 5% reduces the net cashback amount. 

For example: 

• Previously, on a cashback amount of UAH 100, UAH 19.5 in taxes was deducted (18% personal income tax + 1.5% military tax). 

• Starting December 1, 2024, the tax deduction increases to UAH 23 (18% personal income tax + 5% military tax). 

• This reduction is due to the higher military tax rate, which also applies to cashback earnings. 
   

Deposits: new income conditions 

For military personnel and employees of the AFU, SBU, SZRU, GUR, State Border Guard Service, State Special Communications Service, State Transport Special Service, National Guard, and UDO who have not submitted supporting documents, as well as for all other citizens, the changes affect the net income from deposits. 

• Previously, the total taxes on deposit interest were 19.5%. 

• From December 1, 2024, the rate has increased to 23%. 

For legal entities and sole proprietors, the impact of these changes will depend on the specifics of their business activities. We recommend consulting your tax advisor or accountant for detailed guidance. 

We are committed to transparency and supporting our clients during this period of change. A detailed list of exempt categories that do not fall under the increased military tax rate is available in the law's text

For more information, visit our branches or contact Piraeus Bank’s support service. 

We are always here to assist you on your path to financial stability during challenging times!