fop-2022-podatky-zminy-novyny-thumbnail

FOP Ukraine – taxes, novation, news

FOP 2022.RRO
Дія.City, Accounting, Taxes, Ukraine, Private individual

 

Every year the subject of changes for FOP in Ukraine is relevant because the adoption of the law on the State Budget makes adjustments to the taxation of private entrepreneurs. As a rule, it concerns the increase of the minimum wage and, consequently, the size of the unified social contribution (USC), as its percentage is calculated from the amount of the first indicator. And yet the year 2022 will be more innovative for sole proprietors (and probably cause a certain headache): since January 1, 2022, the decision on the compulsory use of cash registers has come into force. In addition, the Verkhovna Rada received another bill (№ 6348) on applying the simplified taxation system, which plans several restrictions for FLPs who pay individual income tax.

 

It seems that the government is going to put too much on us, doesn’t it? But do not worry. We will go through all the points.

 

USC 

 

  • From January 1, 2022, the level of USC for the first, second, third group, as well as FOP on the general system, will be 1430.0 UAH (i.e., 22% of 6500 UAH), and from October 1, 2022, 1474.0 UAH (22% of 6700 UAH).
  • On January 1, 2022, the maximum USC will be 21450 UAH, which is calculated according to the following scheme: 6,500.0 x 15 x 22% (i.e., 22% is calculated from 15 minimum wages). This amount can be paid if the FOP income for the month is at least 97500,0 UAH or more.
  • As of October 1, 2022, the maximum USC amount will be 22110 UAH.

Individual income tax

  • For FOP in the first group, the individual income tax rate will be 248.10 UAH, which is no more than 10% of the cost of living as defined by the law on the state budget as of January 1, 2022 (that is 2393 UAH).
  • FOP in the 2nd group will pay 1,300 UAH of the single tax calculated at a rate of 20% of the minimum wage as of January 1, 2022.
  • FOP in the 3rd group will pay the usual 5% (without status as a VAT payer) or 3% (with the status of a VAT payer) individual income tax if they choose the simplified taxation system.
  • According to the tax legislation, entrepreneurs of the general taxation system of the 4th group pay 18% income tax and 1.5% of the military fee, i.e., no changes in income taxation will happen.

 

The decision on mandatory use of cash registers for FOP 2-4 groups on the simplified tax system will come into force on January 1, 2022. Its main purpose is the fiscalization of sales. It should be recalled that this decision was postponed back in 2020 due to the numerous requests of entrepreneurs in Ukraine. Then it was decided to postpone the requirement from 2021 to 2022. At the current moment, the situation is as follows:

  1. since 2022, all FOP from groups 2-4 that pay individual income tax should perform their activities with the obligatory application of cash registers. There are no conditions for exemption from this obligation. And neither the turnover of the FOP nor the scope of its activities affects this;
  2. if the transaction is carried out through bank transfers, then there is no need for cash registers. However, this does not apply to cash payments, as well as payments by bank card, because in these cases, the use of cash registers is mandatory;
  3. penalties are imposed for failure to comply with this obligation. In particular, if settlement transactions are carried out without fiscal accounting, a fine of 100% of the amount of the first check and 150% of subsequent checks will be imposed.

Bill No. 6348

This draft law proposes to change the conditions for the obligatory use of cash registers and impose such obligation only on legal entities and individual entrepreneurs in group 3 of the simplified system. In addition, there is an exclusive list of issues that are the subject of the actual verification of compliance with the legislation on the implementation of settlement transactions. Thus the legislator tries to simplify the conditions for the use of cash registers and to reduce the possibility of illegal sanctions for business entities.

 

The most interesting novelty of the draft law is the limitation of spheres of activity, which may be performed by the 1st and 2nd groups of the individual income tax payers. As follows from the regulatory act, they are high-yield activities, mainly Internet access services, manufacturing, supply, sale of jewelry and household items made of precious metals, wholesale trade, and several others. In addition, for the 3rd group of FOP, the income threshold is planned to reach 3000 minimum wages (19,5 million UAH as of January 1, 2022), provided they hire more than 10 employees. The standard threshold is 1167 wages (7585500 UAH as of January 1, 2022), while it will remain the same for FOPs with fewer than 10 employees.

 

We shall remind you that the individual income tax rates for groups 1 and 2 of individual entrepreneurship are established by local authorities. The bill plans to expand this power also to establish the tax for sole proprietors of the third group (from 1.5% to 3% for VAT payment and from 2.5% to 5% – when VAT is included in the individual income tax).

 

The draft law also contains provisions for restoring the income accounting system of individual entrepreneurs according to a standard form for daily recording of income/expenses. After abolishing the Book of Income and the Book of Record of Income and Expenses, it is done in an arbitrary form.

 

In general, there are several similar bills, but none of them has been considered by the Verkhovna Rada even in the first reading. What fate awaits Bill No. 6348 is still unknown. In any case, private entrepreneurs should familiarize themselves with the new rules and be ready for possible changes. So stay tuned, we’ll keep you posted on further innovations!

 

E-residency global experience and how it works?

VAT on Digital services

Thnx ;)! Message is sent.
We will reply you soon
astronaut astronaut's hand