Accounting for FOP group 3

Accounting is critically important for any entrepreneur, especially for individual entrepreneurs on a simplified taxation system. Accounting ensures accurate recording of income, is the basis for the correct calculation and payment of taxes and avoidance of fines from tax authorities. Accounting is also a necessary tool for legitimate business activities. In this article, we will analyze in more detail the main features of accounting for FOP group 3.

Individual entrepreneurs of group 3: what is the size of the tax burden?

The tax burden depends on the selected EP rate and the presence of VAT registration. Unlike the general taxation system, it is the entrepreneur’s income that is taxed, not the profit. This somewhat simplifies accounting, although it is not very profitable for the business itself. The main tax rates are as follows:

1. EP: 3% of income (for individual entrepreneurs who are VAT payers), 5% of income (for an ordinary individual entrepreneur of group 3);
2. SSC: 22% of the minimum wage (for employees and separately “for themselves” in accordance with the requirements of the Law of Ukraine “On the State Budget of Ukraine for 2025”). At the same time, those entrepreneurs who are simultaneously employees, pensioners by age, and persons with disabilities are exempt from paying SSC “for themselves”;
3. PIT: 18% of the employee’s salary (if any);
4. Military levy: 1% of the income received.

Features of accounting for FOP group 3

Maintaining financial statements

The main document for accounting for an entrepreneur’s income on a simplified system is generally the income accounting book (and expenses for VAT payers). Below are the features of its maintenance for each specific case.

First, for individual entrepreneurs of group 3 with VAT. Income and expenses are recorded in the Standard form approved by Order of the Ministry of Finance No. 405. It is stored for 3 years after the end of the reporting period.

Secondly, individual entrepreneurs of group 3 without VAT. As a general rule, they should keep a book in any form (preferably in Excel format). It is mandatory to record monthly turnover, fill in hryvnias with kopecks, display total results (for a month, quarter, year separately), and reflect goods (services) received free of charge. The book is not filled out if no income was received during the day.

It is worth noting that not all receipts to the corporate card of the specified entrepreneur should be considered income. In particular, the following are not included in income in accordance with current national legislation:

1. amounts of taxes and fees (at the tax agency);
2. interest, dividends, royalties, insurance payments and compensation;
3. funds received in connection with the sale of movable and immovable property;
4. budget grants;
5. amounts of funds received upon return of goods.

Understanding these features is important for correct accounting of income. Contact a qualified accountant “Prikhodko & Partners” for more detailed online consultation.

Deadlines for paying taxes for FOP group 3 and penalties for non-compliance

In 2025, clear deadlines for paying taxes have been established for this category of entrepreneurs:

• firstly, within ten days after the deadline for submitting a tax return (military levy and single tax), which is submitted to the tax office within forty calendar days after the end of each quarter;
• secondly, by the twentieth of the month following the reporting quarter (USV). The approximate schedule for paying USV in 2025 is as follows: January-March – by April 21, April-June – by July 21, July-September – by October 20, October-December – by January 19, 2026.

Fines are applied for late payment in accordance with the Tax Code of Ukraine: 5-10% of the amount of unpaid military levy and single tax, depending on the terms of non-payment; 20% of the amount of unpaid single social contribution and an additional penalty of 0.1% for each day of such delay. Therefore, proper accounting and tracking of tax payments also play an important role in avoiding excessive financial burden due to their violation, respectively.

What is included in the accounting service for FOP group 3 “Prikhodko & Partners”?

The law firm “Prikhodko & Partners” offers comprehensive accounting services for individual entrepreneurs on a simplified system in 2025. Our services include:

• administration and organization – development of an optimal income accounting system in accordance with the legislation, use of modern tools for automating accounting processes, documentation of the entrepreneur’s business transactions;
• accounting for income and expenses – reflection in the accounting book, control over the timeliness and completeness of the reflection of transactions;
• analysis, systematization and proper storage of primary documents – contracts with suppliers, invoices, waybills, etc.;
• calculation and payment of taxes – preparation and submission of tax reporting to the State Tax Service, ensuring compliance of reporting with the requirements of current legislation, control over payment deadlines.

Contact professional accountants of Prikhodko & Partners and get reliable support for the financial component of your business. To get advice and find out the cost of accounting support for FOP group 3 in 2025, please fill out the form below.