To the attention of individuals – single tax payers of Groups I – III!

From 01.01.2024, according to Articles 7 and 8 of the Law of Ukraine № 3460-IX as of 09.11.2023 "On the State budget of Ukraine for 2024", monthly living salary for able-bodied individuals has been established in the amount of 3028 UAH and the minimum salary is 7100 UAH.

Regarding amount of income

According to the Tax Code of Ukraine (hereinafter – TCU), the maximum amount of income for single tax payers of Groups I – III is calculated taking into account the minimum salary established by the law on January 1 of tax (reporting) year.

Therefore, amount of income for single tax payers should not exceed the following amounts in 2024, namely:

1 185 700 UAH for single tax payers of Group I;

5 921 400 UAH for single tax payers of Group II;

8 285 700 UAH for single tax payers of Group III.

Regarding single tax rates (general provisions)

Paragraph 293.1 Article 293 of the TCU stipulates that the single tax rates for payers of Group I are set as a percentage (fixed rates) up to the subsistence minimum for able-bodied individuals established by the law on January 1 of tax (reporting) year (hereinafter – subsistence minimum), for Group II – as a percentage (fixed rates) up to in amount of the minimum salary established by the law on January 1 of tax (reporting) year (hereinafter – minimum salary).

Fixed rates of the single tax are established by village, settlement and city councils for individuals-entrepreneurs who carry out economic activity, depending on the type of economic activity based on a calendar month:

1) not more than 10 percent of the subsistence minimum for the single tax payers of Group I;

2) not more than 20 percent of the minimum salary for the single tax payers of Group II.

As follows, the maximum monthly amount of the single tax in 2024 for individuals-entrepreneurs – single tax payers of Group I is 302.80 UAH, for the single tax payers of Group II –1420.0 UAH.

Paragraph 293.3 Article 293 of the TCU stipulates that percentage rate of the single tax for payers of Group III is set in the amount:

1) 3 percent of income in case of the value added tax payment according to the TCU;

2) 5 percent of income in the case of including the value added tax as a part of the single tax.

Herewith, it should be taken into account that according to Paragraph 293.4 Article 293 of the TCU, the single tax rate is set for single tax payers of Groups I – III (individuals-entrepreneurs) at the 15 percent rate:

1) up to amount exceeding amount of income specified in Sub-paragraphs 1, 2 and 3 of Paragraph 291.4 Article 291 of the TCU;

2) to income received from the conduction of activities not specified in Register of the single tax payers, assigned to Group I or II;

3) to income received during use of different method of calculations than specified in Chapter 1 of Section XIV of the TCU;

4) to income received from activities that do not give a right to use the simplified taxation system;

5) to income received by payers of Group I or II from carrying out activities that are not provided for in Sub-paragraphs 1 or 2 of Paragraph 291.4 Article 291 of the TCU respectively.