Taxes to Be Paid by Individual Entrepreneurs?

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Taxes for individual entrepreneurs are one of the most common questions, as they depend on the tax group in which the entrepreneur is classified. It's clear that IEs in different tax groups cannot pay the same taxes.

Taxes for individual entrepreneurs group 1

IE in Group 1 do not pay taxes other than the unified social tax (UST) and the unified tax (UT). If an IE chooses the first tax group, the UT rate is up to 10% of the subsistence level (268.40 UAH in 2023). The UST rate for IE in Group 1 is 22% of the minimum wage, which is 6,500 UAH in 2023. This means that FOPs in Group 1 must pay UST in the amount of 1,430 UAH per month and UT in the amount of 268.40 UAH.

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Taxes for individual entrepreneurs group 2

IE in Group 2 pay a single tax at a rate of 20% of the minimum wage, which is 6,700 UAH in 2023. Thus, IE in Group 2 must pay a single tax of 1,340 UAH per month and UST "for themselves" for pension insurance at a rate of 22% of the minimum wage (1,474 UAH as of January 1, 2023).

Taxes for individual entrepreneurs group 3

IE in Group 3 pay taxes depending on their chosen tax regime:

UT: 3% of income when paying VAT; 5% of income when including VAT in the unified tax.

UST "for themselves" for pension insurance: 22% of the minimum wage (1,474 UAH as of January 1, 2023).

Tax Regime "Simplified Taxation, Accounting, and Reporting System"

IE in Group 3 who choose the simplified taxation, accounting, and reporting system pay a single tax of 3% or 5% of income, including documented expenses.

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Tax Regime "General Taxation System"

IE in Group 3 who choose the general taxation system pay the following taxes:

Personal Income Tax at a rate of 18% on the total taxable income.
UST at a rate of 22% of the minimum wage, which is 6,700 UAH in 2023.
Value Added Tax for operations subject to VAT.

Additionally, FOPs in Group 3 may be subject to other taxes, such as excise tax, property tax, land tax, and others. If an IE employs workers, they must also pay taxes for their employees, including personal income tax (PIT).

If you're unsure about which specific taxes you need to pay, it's advisable to consult with professionals in the field of accounting and taxation. They can provide the necessary information and guidance on IE tax payments based on the chosen tax group. To calculate the cost of an accountant's services, fill out the form below.