Changes in the taxation for Ukrainians FOPs in 2025
Several significant changes to the taxation system for individual entrepreneurs (‘FOPs’) should be considered in 2025. These include resuming the unified social contribution tax, increasing the military fee, and introducing new reports. Our material provides details.
Income limits for individual entrepreneurs in 2025
- Group I: up to UAH 1 million 336 thousand
- Group II: up to UAH 6 million 672 thousand
- Group III: up to UAH 9 million 336 thousand.
If the established limits are exceeded, sole proprietors must switch to a higher taxation group. If the limit for Group III taxpayers is exceeded, they must switch to the general taxation system.
Single tax rates and amount for individual entrepreneurs in 2025
- Group I: UAH 302.80 (up to 10% of the subsistence minimum)
- Group II: UAH 1600 maximum (up to 20% of the minimum wage)
- Group III: 5% of income or 3% with VAT
The tax payment deadlines remain unchanged. You must pay a single tax for the first and second groups no later than the 20th of each month. For the third group, it should be no later than 50 calendar days after the end of the reporting quarter.
Payment of the single social contribution in 2025
Starting January 1, 2025, the mandatory payment of the Single Social Contribution will be resumed. Entrepreneurs in the first, second, and third groups will have to pay the USC monthly or at the end of the reporting quarter.
The USC payable is UAH 1760 per month or UAH 5280 for the reporting quarter. The payment deadlines remain the same: by the 19th day of the reporting quarter.
Who does not have to pay the USC in 2025?
Exemptions from paying the USC will be made for those entrepreneurs who are pensioners, persons with disabilities, sole proprietors registered in the temporarily occupied territories, and sole proprietors on the general system.
Payment of the military fee in 2025
Continuing with the innovations, a military tax will be introduced for all entrepreneurs starting January 1, 2025.
- Group I and Group II: 10% of the minimum wage – UAH 800 per month
- Group III: 1% of the income received
The deadlines for paying the military fee are the same as for the single tax: for the first and second groups, the military fee must be paid by the 20th day of each month. For the third group, it must be paid no later than 50 calendar days after the end of the reporting quarter.
According to the tax authorities, the reporting forms will be updated, and the third group will receive a new type of quarterly declaration that includes the military fee.
Who may not pay the military fee in 2025?
The exemption from paying the military fee is for sole proprietors registered under the general taxation system.
Taxes for sole proprietors with employees
Sole proprietor employers will also face changes in their employees’ tax liabilities. In particular, the rate of the military tax has been changed: instead of 1.5%, it is now necessary to pay 5% of the accrued salary. Thus, provided that the minimum salary is UAH 8000, the taxes on employees this year are as follows:
- Personal income tax – 18% – UAH 1440
- Military duty – 5% – UAH 400
- Unified social contribution – 22% – 1760 UAH
We emphasize that the changes in legislation in 2025 should be closely monitored and complied with in a timely manner. Stay up to date with tax innovations in legislation to ensure the success of your business. We will be happy to help you with advice on the taxation of sole proprietorships and registration and support services for sole proprietorships in the IT sector.
Send a request through the form below or a message on Telegram/Viber, Whatsapp for consultations. Our working hours are 9:00-19:00 from Monday to Friday.
