Submissions of an individual entrepreneur 2024

Individual entrepreneurs can choose one of two taxation systems - general or simplified. These systems differ greatly. Therefore, it is not for nothing that the vast majority of entrepreneurs need professional lawyers to provide clarification on this topic not in general terms, but in accordance with the needs of their business. It is worth noting that specialists capable of offering such services work in our law office.

"Prikhodko&Partners" is a team of experts for whom tax law is one of the basic areas of specialization. So we are ready to help you effectively.

What you should know about the differences in taxation systems?

So, on the simplified system, the entrepreneur pays taxes on the total income, and on the general system - on the profit. If there is no profit, then personal income tax, which is 18%, is not paid. In addition to personal income tax, there is also a military levy of 1.5% and EUV, which is equal to 22% of the minimum wage. This minimum wage in Ukraine from January 1 this year is 7,100 hryvnias, and from April it will be 8,000 hryvnias.

When it comes to the simplified taxation system, the specific amount of taxes depends on the group to which the entrepreneur belongs. And the expediency of choosing one or another group, in turn, depends on the KVED (classifier of types of economic activity) and the specifics of the work. If you are just planning your business and are looking for answers to the question of which tax group to choose, it would be appropriate to seek advice from lawyers who specialize in this topic. This will make it possible to avoid critical mistakes that could cost further nerves and efforts.

What is the taxation on the simplified system for each of the groups?

Therefore, each of the taxation groups has the following features:

• Individual entrepreneur of the 1st group pay the EUV and the single tax, which amounts to UAH 302.80. The EP should not be more than 10% of the subsistence minimum.
• Individual entrepreneur II group pay EUV and EP in the amount of 1,420 hryvnias per month. This is 20% of the minimum wage, which was established as of January 1, 2024.
• Group III business owners pay VAT and 5% of income or 3% of income if they are VAT payers.

It is also important to know that individual entrepreneur on the simplified system have a kind of tax benefits until the end of martial law and for another 12 months after its end. This refers to the possibility not to pay the EUV for yourself. You decide whether to pay it or not. You just need to understand that in case of non-payment, these periods of activity, when you use the mentioned benefit, will not count towards your insurance length of service, which is taken into account when determining the pension.

What reporting is submitted by FOP on the simplified system?

Individual entrepreneur that are subject to a single tax and do not have employees, submit the corresponding declaration of the payer of the EP of an individual entrepreneur. Group I and II report for the year using the F01034 form no later than 60 calendar days after the end of the year. Individual entrepreneur of the III group report once a quarter. They fill out and submit the declaration on the form F011033. This must be done no later than 40 calendar days after the last day of the reporting quarter. In the annual declaration, Appendix 1 is also filled in. It is a report on the EUS. And even if you use benefits and don't pay EUV during martial law, you still need to fill out this application.

How we will be useful for you?

Law office "Prikhodko&Partners" provides a wide range of services in the context of consulting and legal support. We will help you:

• to registration of an individual entrepreneur;
• choose a taxation system;
• to offer accounting services or documentary support in legal matters in the format of outsourcing.

Such assistance will greatly simplify your life and allow you not to be distracted by tax and legal issues from your direct operational activities in the framework of business management and development. Fill out the form on our website to receive advice from a practicing tax lawyer.