Taxes and fees for individual entrepreneurs starting March 1: what amounts do business owners need to pay?

In 2025, taxes for individual entrepreneurs increased by several thousand hryvnias. Those operating under the simplified tax system must pay a single tax, a military levy, and the unified social contribution (USC).

https://focus.ua/economics/695752-nalogi-v-ukraine-skolko-platit-v-marte2025-03-01 07:56:47

Single Social Contribution (SSC) in Ukraine: Who and How Much to Pay in March

The basis for calculating the SSC is the minimum wage (currently 8000 UAH), and individual entrepreneurs (FOP) of the first, second, and third tax groups are required to pay 1760 UAH in SSC per month.

Entrepreneurs must pay SSC for their hired employees — 22% of the minimum wage for regular employees and 8.41% for employees with disabilities. If an FOP does not pay SSC for themselves, they will not accumulate pension experience. However, entrepreneurs are not required to pay fines and penalties for non-payment of SSC during martial law and for one year after its conclusion. Additionally, during this period, it is not necessary to submit the SSC annex to the annual report.

What is the Amount of the Unified Tax and Military Levy for FOP

Starting from 2025, individual entrepreneurs on the simplified taxation system will need to pay unified tax, military levy, and SSC.

FOP Group 1 will continue to pay a unified tax at a rate not exceeding 10% of the subsistence minimum per month. Recall that Group 1 includes individual entrepreneurs who do not employ hired labor, sell goods in retail from trading places in markets, and/or conduct economic activities providing household services exclusively to the population.

FOP Group 2 in 2025 will have to pay a unified tax at a rate not exceeding 20% of the minimum wage per month, which is no more than 1600 UAH per month. Recall that the income limit for Group 2 is 5,921,400 UAH (834 minimum wages).

FOP Group 3 must pay a unified tax at a rate of 5% of income, which remains unchanged compared to previous periods. The income limit for Group 3 is 1167 minimum wages or 8,285,700 UAH.

Thus, the military levy in 2025 for FOP Groups 1 and 2 will be 10% of the minimum wage established by law on January 1 of the tax (reporting) year, calculated on a calendar month, which is 800 UAH monthly. Taxpayers of the unified tax in Group 3 will pay a military levy of 1% of their income, paid quarterly.

How Much Entrepreneurs Will Pay in Taxes and Levies in March 2025

As before, the lowest taxes are paid by entrepreneurs in Group 1 — these are individual entrepreneurs (FOP) providing household services to the population or engaging in retail trade at markets (only from trading places). The highest tax burden is imposed on FOPs under the general taxation system (profit taxpayers).

FOP Group I:

Unified tax: 302.80 UAH (10% of the subsistence minimum — 3028 UAH).
Military levy: 800 UAH (10% of the minimum wage — 8000 UAH).
Minimum SSC: 1760 UAH (22% of the minimum wage).
Total tax amount: 2862.80 UAH.

FOP Group II:

Unified tax: 1600 UAH.
Military levy: 800 UAH (10% of the minimum wage — 8000 UAH).
Minimum SSC: 1760 UAH (22% of the minimum wage).
Total tax amount: 4160 UAH.

FOP Group III:

Unified tax:
3% with VAT.
5% without VAT.
Military levy: 1% of income.
Minimum SSC: 1760 UAH (22% of the minimum wage).

FOP Group IV:

Unified tax rate: depends on the category of land and its location.
Military levy: 800 UAH (10% of the minimum wage — 8000 UAH).
Minimum SSC: 1760 UAH (22% of the minimum wage).

FOP on General System:

SSC: at least the minimum amount — 1760 UAH.
Maximum base for SSC: 20 minimum wages (160,000 UAH).
Military levy: 5%.
PIT: 18%.

Who Remains Eligible for SSC Payment Exemptions

Starting from 2025, the right not to pay SSC will remain only for six categories of FOP:

First category — FOP on the general taxation system that do not conduct activities or do not earn profits subject to SSC. They must submit a declaration with zero income for the year. The exemption from SSC payment has been in effect for them since January 1, 2021.
Second category — FOP registered in temporarily occupied territories.
Third category — entrepreneurs who have a primary place of work where the employer pays SSC on their behalf from the minimum wage. In this case, the required insurance contribution is considered paid. This exemption has been in effect since January 1, 2021.
Fourth category — retirees by age or length of service.
Fifth category — persons with disabilities of any group.
Sixth category — FOP and self-employed individuals engaged in independent professional activities. That is, individuals who combine entrepreneurship with professional activities, such as lawyers or notaries. They need to pay SSC only once — either as an FOP or as a self-employed individual.

Additionally, the unified social contribution is declared alongside the annual tax declaration once a year. This can be a property declaration or a declaration for the unified tax payment. If an entrepreneur closes their FOP, they must submit the SSC report along with the liquidation declaration.

When transitioning to another taxation system, the SSC report is submitted together with the last declaration under the previous system. Subsequently, reporting on the unified social contribution must follow the new rules.