For individuals-entrepreneurs – single tax payers of Groups I and II: about the single tax rates from 01.01.2025

Paragraph 293.1 Article 293 of the Tax Code of Ukraine (hereinafter – Code) stipulates that the single tax rates for payers of Group I are set as a percentage (fixed rates) to the amount of subsistence minimum for able-bodied persons established by the law as of January 1 of tax (reporting) year (hereinafter – subsistence minimum), for Group II – as a percentage (fixed rates) to the amount of minimum wage established by the law as of January 1 of tax (reporting) year (hereinafter – minimum wage).

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

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

- for Group II of the single tax payers – not more than 20 percent of the minimum wage.

From 01.01.2025, according to Articles 7 and 8 of the Law of Ukraine № 4059-IX as of 19.11.2024 "On the State budget of Ukraine for 2025", the monthly amounts have been established: the subsistence minimum in the amount of 3028 UAH and the minimum wage – 8000 UAH.

Therefore, the maximum monthly amount of the single tax in 2025 for individuals-entrepreneurs – single tax payers of Group I is 302.80 UAH, for the single tax payers of Group II – 1600.0 UAH.

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

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

2) income received from activities not listed in Register of the single tax payers, classified as belonging to Group I or II;

3) income received by applying calculation method other than that specified in Chapter 1 of Section XIV of the Code;

4) income received from activities that do not give a right to apply the simplified taxation system (except for the single tax payers of Group III – electronic residents (e-residents);

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

In addition, please note the fact that from January 1, 2025, individuals-entrepreneurs who pay the single tax are also payers of military levy.

Military levy rate for individuals-entrepreneurs – single tax payers of Groups I, II and IV in 2025 is 800.0 UAH (10 percent of the minimum wage established by the law as of January 1 of tax (reporting) year, calculated per calendar month). It is paid monthly not later than the 20th (inclusively) of the current month.

Military levy rate for individuals-entrepreneurs – single tax payers of Group III is 1 percent of income determined according to Article 292 of the Code. It is paid within 10 calendar days after deadline for submitting the single tax payer’s declaration for the tax (reporting) quarter.