Types of taxation of individual entrepreneurs (SPD, PE) in Ukraine
Taxation of individual entrepreneurs (individual entrepreneurs, individual entrepreneurs, private entrepreneurs) in Ukraine is always changing, and this cannot but affect the course of business activities. After all, an entrepreneur, in most cases, has to independently monitor all the changes in order to run his business without breaking the laws and pay taxes on time. Taking all this into account without the help of a specialist is almost impossible. Therefore, if you need professionals who are familiar with all the changes in tax and other legislation, who can provide full accounting support for individual entrepreneurs (SPD, PE) in their business, then you are very lucky that you have come to the page of our company BuhUA. We really know about the peculiarities of individual entrepreneur taxation and can help you deal with all your financial statements and documentation.
General taxation system for individual entrepreneurs (SPD, PE)
This system has a number of features, including:
1. Personal income tax rate. faces is 18%. If the profit is:
- up to 20 million UAH. per year – payment once a year;
- more than 20 million UAH. per year – payment once a quarter.
Attention!
To correctly calculate the amount of tax, expenses should consist only of those that are directly related to running a business.
2. Registration of VAT payers is carried out voluntarily. Persons whose annual income exceeds 1 million hryvnia are subject to mandatory registration.
3. Payment of the single social contribution is a mandatory procedure. The tax rate is 22%, the maximum is 25 subsistence minimums.
4. If people work for individual entrepreneurs, then it is necessary to pay taxes on their salaries and other similar payments. That is:
- employee income tax;
- UST from the wage fund (payment is made at the expense of the business entity) in the amount of 22%;
- military gathering.
5. Taxpayers under this system must use cash registers, regardless of whether cash or non-cash payments are used. The exception is the sale of home-made products (except for public catering).
Simplified taxation system for individual entrepreneurs (SPD, PE)
Last year, the simplified taxation system (STS) was seriously changed. Such changes especially affected individual entrepreneurs and single tax payers.
- There are 4 groups of taxpayers instead of six. Moreover, those who were included in groups 3 to 6 were assigned to the third group. In the 4th group there are still agricultural tax payers.
- Groups 2 and 3 must use cash registers if the annual turnover is more than 1 million hryvnia.
- The profit limit was increased for the first two groups to 300,000 hryvnia and 1,500,000 hryvnia, respectively.
- According to Art. 296 of the Tax Code of Ukraine, individual entrepreneurs who are not VAT payers are required to keep an income book. Its form was approved by order of the Ministry of Finance of Ukraine dated June 19, 2015 No. 579.
Attention!
We would like to remind you that single payers are not exempt from keeping records of other taxes.
- Advance payments are paid:
- the first and second groups of each month until the 20th day, or once a year;
- the third group of each quarter;
- the fourth group of each month until the 30th.
- In 2024, the UN rates are:
- for the first group – 10% of the min. salaries;
- for the second group – 20% of the min. salaries;
- for the third group – 3% and VAT or 5% without VAT;
- for the fourth group – depending on the area and characteristics of the land.
In addition, you can clarify the rate in the payer’s personal account at on the website of the State Fiscal Service of Ukraine.
In order to switch to a simplified taxation system, you will need a corresponding application.
To compare the simplified and general tax system for individual entrepreneurs, we have provided the table below.
| – | EN (1st group) | EN (2nd group) | EN (3rd group) | OSN |
|---|---|---|---|---|
| Profit limit | 300,000 per year | 1500000 per year | 20000000 per year | – |
| Limitation on Number of staff | It is prohibited to hire workers | up to 10 | – | – |
| Tax rate | less than 10% of min. Salary | less than 20% of min. Salary |
|
|
| Restrictions depending on the type of activity | Only allowed:
|
Only allowed:
Persons acting as intermediaries in purchases, sales, rental and valuation of real estate or persons working with jewelry (manufacturing and/or selling) can only be in the third group |
Strictly prohibited:
|
– |
| Accounts | Income book |
|
Account book | |
| Payment of taxes | 1 month:
Quarter:
|
1 month:
Quarter:
|
1 month:
Quarter:
|
Quarter:
|
| Reporting | 12 months:
|
12 months:
1 month:
Quarter:
|
12 months:
1 month:
Quarter:
|
12 months:
1 month:
Quarter:
|
| Calculation restrictions | cash only (cash or non-cash) | – | ||
| VAT registration | not allowed | The necessary procedure if you choose a rate of 3%. The procedure cannot be carried out if the person is engaged in the manufacture and sale of jewelry. | A necessary procedure if income exceeds 1,000,000 hryvnia for the last year. | |
| Cash registers | – | Since January 2016, they are optional in small businesses. But they are necessary if the turnover is more than 1 million UAH, not counting trade in self-made products (except for public catering). | They are necessary in all areas of activity if the turnover is more than 1 million UAH, not counting trade in home-made products (except for public catering). | They are necessary for all types of activities, not counting trade in self-made products (except for public catering). |