"We save the most important thing: your time, your nerves, your money."

Vorozhbitova Krystyna

Chief Accountant

Leading specialist with practical experience in economics and accounting

Contact now


 A sole proprietorship is a kind of business entity that provides for the conduct of business by an individual, but without the application or use of corporate characteristics of companies. However, in most cases, Entepreneur open bank accounts to carry out their activities.

 And here the question arises: how does a personal account differ from a personal account of an individual and how to use it? After all, a natural person (citizen) and a natural person-entrepreneur are different subjects of activity, endowed with different powers, and therefore the income of such subjects is taxed differently.

 Therefore, we note a number of general rules that must be followed by Entepreneur to avoid further problems:

 [1] It should be remembered that the use of personal accounts (including card) of individuals for transactions related to business activities is strictly prohibited.

 Currently, the State Tax Service of Ukraine does not have access to personal accounts of citizens, but may receive it soon, as the relevant bill has been registered in the Verkhovna Rada of Ukraine. Therefore, there may be a situation with a limited liability company, when the supervisory authorities have the opportunity to find out information that constitutes a secret protected by law (including banking).

 What are the risks of taxpayers’ detection of personal income received on non-entrepreneurial accounts?

  • – taxation of them as income of an individual (18 % of personal income tax + 1.5 % of military duty);
  • – fines for reduction or late payment of taxes.

 [2] If you plan to receive non-cash income as a sole proprietor – be sure to open a business account. At the same time it will be possible to receive payments in the usual way on a card – having made a card “key to the account”.

 It should be noted that if you receive income only in cash, it is not necessary to open a business account, and the payment of taxes and fees related to business activities can be made:

  • through the bank’s cash desk;
  • through the bank terminal;
  • from the personal card of an individual.

 But it is worth remembering the reform of the RRO. Therefore, if you work with cash – explore the issue of establishing RRO (we talked about this in previous articles) and, if necessary, install it.

 [3] Do not transfer money from the Entepreneur account to ordinary individuals. This is due to the fact that if you transfer from a private individual card to an individual card (which is not registered by the entrepreneur, but sells something), then you automatically become its tax agent and are required to pay 18 % personal income tax and military tax 1.5 %, and in some cases a single social contribution of 22 %.

 [4] Do not withdraw free funds from the personal account for your own needs. This is due to changes made by the NBU in early 2020. In order to withdraw cash from a sole proprietorship account, you are required to document proof of use of such funds in the course of business activities. Therefore, if you want to get a net income – first withdraw funds to your personal card of an individual, be sure to specify the purpose: “Conversion of part of the income from business activities for their own needs.”

 If you have additional questions, please contact the law firm “Prikhodko and Partners”, we will be happy to advise you!

If we do not call back during the day