Legislative Changes in Ukraine: Overview of Key Updates in October 2025

Tax Reforms: Law No. 4536 Changes the Rules of the Game

October 1, 2025 marked the entry into force of Law of Ukraine No. 4536-IX, which introduced sweeping changes to the Tax Code and related regulatory acts. This legislative package covers a wide range of tax, environmental, and licensing issues.​

Key tax innovations:

Quarterly reporting instead of monthly. For individual entrepreneurs (FOP) and persons engaged in independent professional activities, quarterly reporting for hired employees (personal income tax, military levy, unified social contribution) will be introduced from 2026 instead of monthly reporting. This will reduce the administrative burden on small businesses.​

Tax deduction for housing rent. Combat veterans and persons with disabilities due to the war have been granted the right to a tax deduction for housing rental expenses. This is targeted support for the most vulnerable categories of the population.​

Expanded benefits for FOPs on maternity leave. From October 1, 2025, FOPs on maternity leave caring for a child under 3 years of age are exempt from paying the unified social contribution (USC) "for themselves" even without having a primary place of employment. Previously, this benefit required having a primary job where the employer fully paid the USC.​

Land tax for mining enterprises. New rates have been introduced: 8% of the normative monetary valuation of land (if valuation exists) and 12% of the valuation of arable land in the region (if no valuation). This represents a significant increase in the tax burden for the extractive industry.​

New Requirements for Licensees: Salary Control

From October 1, 2025, new requirements regarding the minimum average monthly salary of employees have been established for business entities engaged in retail trade of alcoholic beverages, tobacco products, and fuel.​

If the average salary of employees is below the established minimum, this may become grounds for license revocation. For FOPs without employees, a minimum level of taxable income has been established. These regulations aim to formalize salaries and combat "envelope payments" in excise sectors.​

Extension of Martial Law and Mobilization

On October 21, 2025, the Verkhovna Rada of Ukraine adopted Laws No. 14128 and No. 14129, which approved the extension of martial law and general mobilization from November 5, 2025, for 90 days — until February 3, 2026. This is the 17th extension of the regime since the beginning of the full-scale invasion.​

Martial law entails the continuation of restrictions for businesses and citizens, including special operating regimes, mobilization obligations, and administrative limitations.​

State Budget 2026: Minimum Wage to Increase by 8%

On October 22, 2025, the Verkhovna Rada adopted in the first reading the draft State Budget of Ukraine for 2026. Final adoption is expected by November 20, 2025.​

Key indicators of the State Budget 2026:

• Minimum wage: UAH 8,647 (increase of UAH 647 or 8.6% compared to 2025)​

• Subsistence minimum: UAH 3,209 per month​

• Average wage: UAH 30,032 (forecast)​

• Defense and security expenditures: UAH 2.8 trillion (27.2% of GDP)​

• Social protection: UAH 467.1 billion​

• Education: UAH 265.4 billion​

• Healthcare: UAH 258 billion​

The minimum wage is a baseline indicator for calculating many social benefits, sick leave payments, taxes, and limits for FOPs. The increase in the minimum wage will lead to higher USC, sick leave payments, travel allowances, and fines for violations of labor legislation.​

Simplification of Document Flow for Businesses

On October 23, 2025, the Verkhovna Rada adopted in the first reading draft law No. 14023 on simplifying document flow for enterprises.​

The draft law allows for the preparation of acts of services rendered without indicating the position, surname, and signature of the customer if:

• this is stipulated in the contract between the parties;

• services are paid in full by non-cash means.​

Important: changes do not apply to services paid from budget funds — for them, current requirements for primary documentation remain in effect.​

This initiative was developed at the request of businesses to reduce bureaucracy and accelerate document flow processes between service providers and customers.​

Financial Sector: New Transfer Rules

From October 1, 2025, Ukraine has introduced new rules for card-to-card money transfers based on open banking technology. The innovation ensures full identification of participants in each transaction, which increases transparency and security of financial operations and reduces fraud risks.​

The National Bank of Ukraine has also begun the gradual withdrawal of 10-kopeck coins from circulation. The coins remain legal tender, but rounding rules will apply in transactions.​

Social Benefits: Basic Assistance for All

From October 1, 2025, basic social assistance can be applied for by all categories of citizens whose financial and property status meets the criteria. Previously, in summer 2025, only those who already had social benefits could use the system.​

The assistance is assigned for a period of six months with the possibility of automatic extension for two years. This is an important step in reforming the social protection system with a transition to targeted assistance.​

Conclusion

October 2025 became a period of large-scale legislative changes in Ukraine. Tax reforms, simplification of business procedures, extension of martial law, and adoption of the budget for the next year create a new legal landscape for citizens and businesses. These changes are aimed at formalizing the economy, supporting vulnerable population categories, and adapting the legal framework to wartime conditions while simultaneously advancing European integration reforms.

Legal Disclaimer: This article is for informational and analytical purposes only and does not constitute legal advice, investment advice, or recommendations for making any financial or legal decisions. The authors are not responsible for any decisions made based on this material. For specific recommendations on tax, legal, or financial matters, it is recommended to consult qualified professionals.