Single Tax in Ukraine

by Roman Cheplyk
Tuesday, December 28, 2021
Single Tax in Ukraine

At the end of October 2021, there were almost 2 million active private entrepreneurs in Ukraine

In Ukraine, a single tax is called, which is paid by individual entrepreneurs who work under a simplified taxation system. They are called a unified tax since the single tax is the main one.

All money that entrepreneurs pay as a single tax goes to the accounts of local treasuries.

Since in 2022, the minimum wage will increase to $246 and the living wage — to $91, the amount of the single tax will also increase but will not change during the year.

In 2022, individual entrepreneurs will have to switch to monthly reporting on a single tax instead of quarterly. The income limits for the single tax groups will also rise because they are also tied to the minimum wage.

There are four groups of single taxpayers in Ukraine:

  • The first and second editors pay taxes in a fixed amount, which does not depend on profits. The main thing is that the income for the whole year fits into the volumes established for the group;
  • The rate is not fixed on the third group of the single tax group. It depends on the income that the entrepreneur received during the reporting period;
  • The editors of the fourth group consider the normative monetary value of one hectare of agricultural land to be the tax base.

All cash receipts, both cash and non-cash, and tangible and intangible remuneration belong to the income of single-sole proprietors. But royalties, dividends, insurance payments, and funds received from a property sale are not considered income.

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