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Individual-entrepreneur 3 groups: key points of control


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Individual entrepreneurs (PEs) are an important component of the segment of entrepreneurial activity capable of stimulating economic development and innovation. However, understanding the tax requirements for third party FPOs is key to ensuring their success and financial stability. The main taxes that have to be paid by FPOs of the 3rd group and we will provide useful advice on managing tax liabilities:

1. Single tax

FPOs of 3 groups have the right to pay a single tax on the simplified taxation system. The amount of tax is calculated according to the selected group and the size of the minimum tax liability. This type of taxation provides certain advantages, such as simplified reporting and reduced tax pressure on the enterprise.

Tip: Before choosing a taxation regime, be sure to consult with tax law specialists to choose the best option that takes into account the specifics of your activity and maximizes financial benefits.

2. Personal income tax (PIT)

FOPs are also required to pay personal income tax according to the established rate, which depends on the amount of their income. Personal income tax is calculated on the basis of the amount of profit received during the reporting period.

Tip: Use electronic accounting tools and programs to automate the calculation and payment of personal income tax to avoid errors and ensure timely reporting.

3. Local taxes and fees

In addition to basic taxes, FOPs may also be required to pay local taxes and fees, such as land tax, property tax or local utility fees.

Tip: Check your local laws and regulations periodically to make sure you are fully compliant with all local tax obligations.

  1. For Beginners and Small Businesses: For those who are just starting their entrepreneurial activity or have a small volume of operations, entering the third group can be a profitable option. This allows you to avoid complex accounting and tax procedures that are characteristic of other taxation regimes.
  2. Those who do not have large expenses: FPOs with small expenses for running a business, for example, for renting premises or paying employees, can find in the third group an effective way to optimize tax expenses.
  3. Those looking for simplified reporting: For entrepreneurs who prefer simplicity and speed in reporting, taxation under the third group can be a convenient option, as it involves fewer reporting documents and procedures.
  1. Entrepreneurs with a large volume of transactions: If your business has a large volume of turnover or a large number of transactions, taxation under the third group may not be advantageous because it is limited to a minimum amount of taxable income.
  2. Those with large expenses: If you plan to spend a lot on business development or labor costs, it may be more beneficial to choose a different tax regime that allows you to recover these expenses.
  3. Entrepreneurs with certain types of activities: Certain types of activities, such as the sale of alcoholic beverages, tobacco products or medicinal products, may have restrictions on the possibility of entering the third group.
система оподаткування ФОП 3 групи

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The cash register is used to register transactions for the sale of goods or the provision of services. This may include:

  • Sale of goods or services by non-cash and cash payment method.
  • Acceptance of advances for goods or services.
  • Return of goods or cancellation of services.

Payment systems such as WayForPay and Fondy, together with the installation of a payment terminal, have become an integral part of modern business. However, when using them, entrepreneurs often make a number of mistakes that can negatively affect their activities.

Insufficient data security

One of the biggest mistakes is insufficient attention to the protection of personal data of customers and the security of payments. Recent cases of security breaches of large companies have shown that this is a serious threat to the activities of entrepreneurs. It is recommended that you take all possible security measures, such as using encryption, two-factor authentication, and regular software updates.

Incorrect configuration of payment systems

Fondy and WayForPay are popular payment systems that allow FOPs to accept online payments from customers. However, improper configuration of these systems can lead to problems with payment accounting, delays in the payment of funds, or even loss of customers due to unstable operation of payment gateways. This may include misconfiguration of payment methods, insufficient currency support, or incorrect payment processing. It is important to carefully familiarize yourself with the terms of use of these systems and adjust their functionality accordingly for optimal operation.

Unprofessional terminal service

Installing payment terminals can be an important step in expanding payment methods for your business. However, insufficient maintenance of the terminals can lead to their malfunction or failure, resulting in loss of customers and loss of profit. It is recommended to carry out regular maintenance of the terminals and correct any detected malfunctions in a timely manner.

Underestimation of currency transactions

FPOs that have foreign exchange earnings often face risks related to exchange rate fluctuations, as well as the tax aspects of foreign exchange transactions. One of the common mistakes is insufficient analysis of these risks and underestimation of their impact on the company’s financial condition. It is recommended to contact financial consulting specialists or tax consultants for professional assistance in managing currency risk and optimizing tax payments.

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