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

From 01.01.2023 according to Articles 7 and 8 of the Law of Ukraine № 2710-IX as of 03.11.2022 "On the State budget of Ukraine for 2023" the monthly living wage for able-bodied persons was established in the amount of 2684 UAH and the minimum wage – 6700 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 wage established by the law on January 1 of the tax (reporting) year.

Amount of income for individuals who pay the single tax must not exceed the following amounts in 2023, namely:

1.118.900 UAH for the single tax payers of Group I;

5.587.800 UAH for the single tax payers of Group II;

7.818.900 UAH for the single tax payers of Group III.

Regarding the 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 amount of the subsistence minimum for able-bodied persons, established by the law on January 1 of the tax (reporting) year (hereinafter – subsistence minimum); for Group II – as a percentage (fixed rates) up to the amount of the minimum wage established by the law on January 1 of the tax (reporting) year (hereinafter – minimum wage).

Fixed single tax rates are established by village, settlement, city councils or councils of united territorial communities, created according to the law and the perspective plan for the formation of community territories, for individuals-entrepreneurs who carry out economic activities, depending on the type economic activity, based on the 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 wage for the single tax payers of Group II.

Therefore, the maximum monthly amount of the single tax in 2023 for the individuals-entrepreneurs – single tax payers of Group I is 268.40 UAH; for the single tax payers of Group II – 1340.0 UAH.

Sub-paragraph 293.3 Article 293 of the TCU stipulates that percentage of the single tax rate for taxpayers of Group III is set in the amount of:

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

2) 5 percent of income – in case of inclusion of the value added tax in the single tax.

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

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

2) to the 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 applying a different method of calculations than specified in Chapter 1 Section XIV of the TCU;

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

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

Regarding the single tax rates (from April 1, 2022 until termination or cancellation of the state of emergency or martial law on the territory of Ukraine)

Law of Ukraine № 2120-IХ as of 15.03.2022 "On amendments the Tax Code of Ukraine and other legislative acts of Ukraine regarding the effect of norms during the martial law" made changes to the TCU, in particular, amended with new Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU.

Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU stipulates that temporarily, from April 1, 2022, until termination or cancellation of the marital law or emergency in the territory of Ukraine, provisions of Section XIV of the TCU are applied taking into account specific peculiarities of the TCU, in particular, according to Clause 1 of Sub-paragraph 9.1 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU it is established that individuals-entrepreneurs – single tax payers of Group I or II have a right not to pay the single tax.

Herewith, such persons do not fill in declaration of the single tax payer – individual-entrepreneur for a period in which, according to Clause 1 of Sub-paragraph 9.1 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, the single tax was not paid (Clause 2 of Sub-paragraph 9.1 Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU).

Percentage single tax rate for the single tax payers of Group III, who use special taxation peculiarities, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, is set at the 2 percent income rate determined according to Article 292 of the TCU.

Single tax payers of Group III, who use special taxation peculiarities, established by Paragraph 9 Sub-section 8 Section XX "Transitional Provisions" of the TCU, are exempted from obligation to calculate and pay the value added tax for provision of products, works and services, provision place of which is located in the customs territory of Ukraine, as well as from submission of the value added tax declarations and their registration as the value added tax payer is suspended.