Taxes for Ukrainian Sole Proprietors (FOP) in Groups 1, 2, and 3: When to Pay If You’ve Just Registered a FOP, and Who Can Avoid Paying the Social Security Contribution (SSC)?

The author of the article: Denis Korablyov

Modified date: 19 January 2026

Have you just opened a sole proprietorship (FOP) or are you only planning this step? The excitement of starting your own business is usually accompanied by lots of questions: which FOP group to choose, what is the difference between Group 2 and Group 3, and what taxes does Group 1 pay?

In 2026, the rules and amounts have been updated, so it’s important to understand: when to start accepting payments, how much the SSC (Unified Social Contribution) is, and whether any benefits exist. In this article, we’ll break everything down for each group so you avoid common beginner mistakes and clearly know your tax calendar.

Paying taxes for FOP on the general taxation system

If you have just opened an FOP and immediately filed an application for the simplified system – stop! There is an important nuance here that new entrepreneurs often ignore.

For example: the FOP is opened on June 10, and the application for the simplified system is submitted by the end of the month – you will become a single tax payer only from July 1. Until that moment, you are formally on the general taxation system. This is also confirmed by tax authorities in an official consultation.

Why is this important? Because in this “transition period” completely different rules apply for calculating SSC and taxes.

• SSC for a general system taxpayer is calculated from net income (income minus expenses) at a rate of 22%. If there is no income or activity during the month, you do not have to pay SSC. But if you received any income and your expenses are not confirmed, you will have to pay the minimum SSC (UAH 1902.34).
• If you receive a payment during this time: you will have to pay 18% personal income tax, 5% military levy, and 22% SSC.

To switch to the simplified system, you need to submit an application:

If you miss the application deadline, you will be able to switch to the simplified system only starting from the new quarter (provided that you submit the application no later than 15 calendar days before the start of the quarter).

When FOP Groups 1, 2, and 3 start paying taxes after registration

In the first days after registration, the single tax is not paid – the obligation arises only from the month when the simplified system officially takes effect for you.

How can you find out from which date you became a single tax payer? There are several proven ways:

• In the personal taxpayer account – in the “Taxpayer registration details” section. It clearly shows the date you were registered as a single tax payer.
• In the Diia app – the “FOP Taxes” section, tab “Single tax payer registration details”.
• Via OpenDataUA – simply enter your tax ID (registration number of the taxpayer card), and within 2-3 days after registration you will see all the necessary information.

Important! This is the date from which the obligation to pay the single tax, SSC, and the military levy begins.

Therefore, for FOP Group 1 and Group 2, during the registration month the “general system” rules apply:

• No income (or expenses exceed income) – SSC is not paid.
• There is net income – SSC is paid at a rate of 22%, but not less than the minimum contribution (UAH 1902.34).

What about the single tax Group 3? Here everything is different! Why? Because for this group there is no so-called “transition period” – you automatically become a single tax payer from the date of state registration of the FOP.

Imagine: you registered an FOP on July 15 – from that day you already need to calculate and pay the single tax, SSC, and the military levy.

To avoid missing anything and always pay on time, it’s worth using a tax calendar. For example, the company Taxer has a free and convenient version with all deadlines and amounts for each group.

And also – arrange accounting support with an accountant. Then you definitely won’t have to worry about deadlines, bank details, and correct tax payments. The buh.ua team is always in touch.

FOP Group 1: when and how much tax to pay

FOP Group 1 pays the single tax (ST)  in advance – by the 20th of each month.
If you want, you can pay the amount in advance for several months or even for the whole year (the main thing is that it is the current calendar year).

Miss a payment? You’ll get a “bonus”:

• the tax rate increases by 50%
• two quarters without payment – and you will be automatically transferred to the general taxation system.

There is an exception – a “tax vacation”
An entrepreneur in Group 1 has the right once a year to take a “tax vacation” for one month (for example, due to illness).
During this period, you may not pay the tax, but you cannot receive income during that month. If money still comes in, you will have to pay the tax.

So, the total tax amount for Group 1

Total: UAH 3069.84 per month.

Remember: If you forgot to pay the tax in January and February, already in March you may receive a notice about being transferred to the general taxation system – and that means completely different taxes and reports.

FOP Group 2: when and how much tax to pay

Group 2 also has its own specifics, because if you don’t know the nuances – hello, 45% tax.

In general, just like with Group 1, a “transition period” applies. 

You will become a single tax payer only from the 1st day of the next month. For example, if you registered on June 10, then until June 30 you are not yet a single tax payer – you are on the general system. Therefore, only from July 1 you can pay taxes under the simplified system.

Before the 1st – you are on the general system. If there is no income – you don’t pay anything.

But if you receive income during this period – you pay: 18% personal income tax; 5% military levy and 22% SSC. Total 45%. 

Remember that FOP Group 2 taxation starts exactly from the 1st day of the next month, so any income received before that date is taxed at the high rates of the general system.

To avoid this – don’t accept payments in the first month, or register Group 3 right away, where the transition happens from the registration date. Or keep records and be ready to file an income declaration.

So, the total tax amount for Group 2

Single tax

UAH 1729.40/month

Military levy

UAH 864.70/month

SSC

UAH 1902.34/month

Total: UAH 4496.44 per month.

FOP Group 3: when and how much tax to pay

But with FOP Group 3 the situation is completely different! There is no “transition period” here. An entrepreneur is considered a single tax payer immediately from the day of registration (if the application is submitted within 10 days).

For example, if an FOP is registered in June, then already from June you start paying:

Important point: it’s impossible to calculate the total tax amount for Group 3 in advance.
FOPs in Group 3 consistently pay UAH 1902.34 SSC and 6% of income (5% single tax + 1% military levy). And income each month can be different – or even absent. In that case, only SSC is paid.

In Group 3, taxes are not paid in advance. You report quarterly: first you submit the declaration (within 40 days after the quarter), and then within 10 days you pay the assessed amount.

Payment of the single tax and military levy: no later than 10 calendar days following the last day for submitting the quarterly declaration (within 50 days after the end of the reporting quarter).
SSC: quarterly, within 19 days following the quarter for which payment is made.

Declaration submission deadlines in 2026:

• For Q1 – until May 11, 2026.
• For Q2 – until August 10, 2026.
• For Q3 – until November 9, 2026.
• For Q4 – until February 9, 2027.

SSC for FOP: who, when, and how much pays

As of January 1, 2025, the “wartime benefit” that allowed entrepreneurs not to pay SSC for themselves was canceled. In 2026, most entrepreneurs are required to pay the contribution regardless of whether they have income. 

For FOPs in Groups 1-2, the obligation arises from the first month on the simplified system.
For Group 3 – from the first day of state registration. Even if you registered on the 30th, you must pay the full SSC amount for that month.

How does it work in practice?
If in the first month (on the general system) there was no income, you may not pay SSC or pay it voluntarily. But as soon as you switch to the simplified system, the contribution becomes mandatory even if you haven’t received any income yet! You must pay on time to avoid debts and penalties.

People often ask: “Can I not pay SSC like it was allowed since 2022?”

In general, there are certain exceptions. It is allowed NOT to pay SSC only for specific categories:

• People with disabilities if they receive social benefits or a pension;
• Pensioners by age or years of service;
• FOPs on the general system who have no income;
• FOPs who are employees if SSC is paid for them by the employer at their main place of work;
• Mobilized entrepreneurs – if they submitted supporting documents and an application, they may not pay SSC during their service.

How to calculate SSC for an FOP

The calculation mechanism depends on your taxation system:

• FOP on the general system: you pay 22% of net income (profit). If there was no income in a month, you may not pay SSC. But remember: if there is even UAH 1 of profit, you must pay the minimum contribution – UAH 1902.34.
• FOP on the simplified system (Groups 1, 2, 3): the payment is fixed and is usually made quarterly.

Example for Groups 1 and 2: Registered in May? All of May you are on the general system. If there were no payments, you don’t pay SSC for May. You become a single tax payer from June 1, so the mandatory SSC is начислен only for June (UAH 1902.34).

Example for Group 3: Registered on May 20? You are immediately a single tax payer. Therefore, by July 19 you will need to pay SSC for two months: the full May and the full June. Total: UAH 3804.68.

Important about amounts in the cabinet: Don’t worry if in the tax calendar or payment slips you see the standard amount for a full quarter – UAH 5707.02. If you did not work a full quarter (for example, only one month), you have the right to pay only UAH 1902.34 for that month. The tax authority will automatically take your registration date into account.

Conclusion

One of the most common mistakes new FOPs make is paying taxes “in advance” before they officially become taxpayers. Or not paying at all because “I haven’t earned anything yet.” To start confidently, let’s sum up the key points:

• Do not pay the single tax until you are added to the taxpayer register (for Groups 1-2) or until you actually receive income (for Group 3).
• SSC must be paid mandatory, but there are exceptions for those who can legally avoid it.
• In the first month after registration, it’s better to check everything three times: which group you chose, whether your tax application was confirmed, and whether your status is already active.
• If you missed something – don’t panic. In many cases, you can submit a clarification request or get a refund for overpaid amounts.
• The most important thing is to understand exactly when you become a single tax payer and from what moment SSC starts being начислен. Keep a close eye on deadlines, avoid receiving payments during the “transition period” so you don’t end up paying 45% tax instead of the expected minimum amounts, and don’t postpone mandatory contributions.

And of course, don’t hesitate to ask questions. One short comment from an accountant often saves you from long explanations at the tax office.