Security activity: take care of transition to the general system in advance

State Tax Service reminds business entities that provide security services of the need to timely submit application for refusal from the simplified taxation system and make a transition to the general system.

From January 1, 2026, legal entities whose main activity is security cannot apply the simplified taxation system according to the Law № 4698-ІХ as of 03.12.2025

Therefore, the State Tax Service requests to submit relevant application in advance and bring the one’s activity into line with current regulations.

Since the beginning of year, security companies have already started submitting applications to resolve question of the taxation system. We thank the taxpayers for their responsible attitude and timely compliance with legislative requirements.

Transition to the general taxation system occurs from the first day of month following the tax (reporting) period in which such activity was carried out. To do this, it is necessary to submit application for refusal from the simplified system. If security activity is actually not the main one, registration data of the company should be brought into line.

Please note: single tax payers of Group III, involved in activities that are not permitted for the simplified system, are obliged to apply the double single tax rate.

In case of violations detected during tax audits, the controlling authority has a right to cancel the single tax payer’s registration (for Groups I – III). Decision is made on the basis of audit report and is applied from the first day of month following the quarter in which violation was committed.

In this case, it will be possible to make a transition to the simplified system again only after four consecutive quarters from the moment the decision is made by the controlling authority.

Payers are asked not to postpone submitting application and to settle this question in advance. This will ensure continuity of the company’s activity and work in the legal field without unnecessary risks.

 For reference

Law of Ukraine № 4698 – ІХ as of 03.12.2025 “On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding taxation peculiarities of banks with the corporate income tax in 2026 and postponement of deadlines for introduction of electronic circulation system of alcoholic beverages, tobacco products and liquids used in electronic cigarettes”