Under what conditions can individuals – entrepreneurs be single tax payers of Groups I - III?
Information and Reference Department , published 25 July 2022 at 16:04 Chapter: News
Sub-paragraph 1 Paragraph 291.4 Article 291 of the Tax Code of Ukraine № 2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that to Group I single tax payers belonging include individuals – entrepreneurs ,who do not use labor of hired persons, carry out exclusively retail sales of goods from trading places on the markets and/or conduct economic activities for the provision of household services to the population and whose income during the calendar year does not exceed 167 times the minimum wage established by law on January 1 of the tax year ( reporting) year.
Sub-paragraph 2 Paragraph 291.4 Article 291 of the TCU stipulates that the single tax payers who belong to Group II individuals – entrepreneurs that carry out economic activities in provision of services, including household services, single tax payers and/or population, production and/or sale of goods, activities in the restaurant business, provided that the following criteria are met during the calendar year:
do not use labor of hired persons or the number of persons who are in labor relations with them does not exceed 10 persons at the same time;
amount of income does not exceed 834 amounts of the minimum wage established by law on January 1 of the tax (reporting) year.
Validity of Sub-paragraph 2 Paragraph 291.4 Article 291 of the TCU is not applicable to individuals – entrepreneurs that provide intermediary services for the purchase, sale, lease and evaluation of real estate (group 70.31 KVED DK 009:2005), services for providing access to the Internet and also carry out production, supply, sale (realization) activities of jewelry and household products made of precious metals, precious stones, precious stones of organic formation and semi-precious stones. Such individuals – entrepreneurs belong exclusively to the single tax payers of Group III, if they meet the requirements, established for such Group (Clause 4 Sub-paragraph 2 Paragraph 291.4 Article 291 of the TCU).
Single tax payers belonging to Group III individuals – entrepreneurs that do not use labor of hired persons or the number of persons who are in labor relations with them is not limited and whose income during the calendar year does not exceed 1167 times th3e minimum wage is established by the law as of January 1 of the tax (reporting) year (Sub-paragraph 3 Paragraph 291.4 Article 291 of the TCU).
Along with this, Sub-paragraphs 291.5.1 - 291.5.4, 291.5.7 and 291.5.8 of Paragraph 291.5 Article 291 of the TCU stipulates that it is determined that the following cannot be single tax payers of Groups I - III:
business entities that carry out:
1) activities related to the organization, conduct of gambling games, lotteries (except distribution of lotteries), betting (bookmaking bet, totalizer bet);
2) foreign currency exchange;
3) production, export, import, sale of excise goods (except for the retail sale of fuel and lubricants in containers of up to 20 liters and activities of individuals related to the retail sale of beer, cider, perry (without the addition of alcohol) and table wines);
4) extraction, production, sale of precious metals and precious stones, including organogenic formation (except for production, supply, sale (sale) of jewelry and household products made of precious metals, precious stones, precious stones of organic formation and semi-precious stones);
5) extraction, sale of minerals, except sale of minerals of local importance;
6) activities in the financial intermediation, except for activities in insurance, which are carried out by insurance agents, defined by the Law of Ukraine No. 85/96-BP as of 07.03.1996 “On insurance", surveyors, accident commissioners and adjusters, defined in Section III of the TCU;
7) business management activities;
8) activity in the provision of postal services (except for courier activities), activity in the provision of fixed telephone communication services with a right to maintain and operate telecommunication networks and provision of telecommunication channels (local, long-distance, international), activity in provision of fixed telephone services using wireless access to the telecommunications network with a right of technical maintenance and provision of telecommunication channels (local, long-distance, international), activity in the provision of mobile (mobile) telephone services with a right of technical maintenance and operation of telecommunication networks and making telecommunications channels available for use, activities for the provision of services for technical maintenance and operation of telecommunication networks, broadcast television and radio broadcasting networks, wire radio broadcasting and television networks;
9) activities for the sale of works of art and antiques, activities for the organization of trades (auctions) of works of art, collectibles or antiques;
10) activities related to the organization and holding of touring events;
Individuals – entrepreneurs that carry out technical tests and research (group 74.3 KVED DK 009:2005), activities in the audit sphere;
individuals – entrepreneurs that lease land plots, the total area of which exceeds 0.2 hectares, residential premises and/or their parts, total area of which exceeds 400 square meters, non-residential premises (structures, buildings) and/or their parts, total area of which exceeds 900 square meters;
insurance (reinsurance) brokers, banks, credit unions, pawnshops, leasing companies, trust companies, insurance companies, pension fund institutions, investment funds and companies, other financial institutions defined by law; registrars of securities;
individuals - non-residents;
taxpayers who, on the day of filing in the application for registration as a single tax payer, have a tax debt, except for bad tax debt that arose as a result of force majeure.
More information is in the “Knowledge Base” of public information and reference resource