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Several factors will affect the taxation of the economic activities of individual entrepreneurs in 2025. First, these are legislative changes that will come into force for individual entrepreneurs from January 1, 2025, in particular Law of Ukraine No. 11416-d, as well as the size of such fixed financial rates as the minimum wage and the subsistence minimum, which are established in the State Budget of Ukraine for the next financial year.
Let’s start with individual entrepreneurs operating on the general taxation system.
– The income tax rate will remain the same as before at 18%.
– The rate of the Unified Social Contribution (USC) will be 22% of the minimum wage, which in 2025 should remain at the level of 8,000 UAH. That is, the amount of the USC each month will be 1,760 UAH. It should be noted that since the beginning of martial law, it was possible to pay the single tax to individual entrepreneurs on their own behalf voluntarily, but from January 2025, the payment of the single tax will again become mandatory.
– The military levy rate will increase to 5% from 01.01.2025.
– The rate of VAT, excise duties, property taxes, etc. remains unchanged for the next year.
As for individual entrepreneurs who are on the simplified taxation system, they will need to pay the following taxes in the following amounts:
– Individual entrepreneurs of the first group will still have to pay a single tax at a rate of no more than 10% of the subsistence minimum per month. The subsistence minimum for able-bodied persons for the next year remains at the level of 3,028 UAH, i.e. the monthly payment will be no more than 302 80 kopecks. The specific rate in % of the subsistence minimum for each region of the country may vary.
– Individual entrepreneurs of the second group will have to pay a single tax at a rate of no more than 20% of the minimum wage per month, i.e. no more than 1600 UAH per month, depending on the region of business activity. Just like for the first group, the specific rate in % of the minimum wage for each region of the country may vary.
– Individual entrepreneurs of the third group of the single tax will have to pay a single tax in the amount of 5% of income, i.e. here there are no changes compared to previous periods.
– Mandatory payment of the social security contribution for all individual entrepreneurs on the single tax is returned from January 1 in the amount of 22% of the minimum wage, i.e. 1760 UAH per month.
– An innovation is the obligation to pay military service for individual entrepreneurs. Starting from January 1, 2025, for the first, second, and fourth groups of the single tax, the amount of the VZ is 10 percent of the minimum wage established by law on January 1 of the tax (reporting) year, calculated per calendar month. That is, 800 UAH per month, the payment deadline is until the 20th of each month. Single taxpayers of the third group will pay a military levy of 1% of the income received, payment is quarterly. This 1% of the military levy is added to the single tax rate, in the context of administration and payment to the budget.
As for employees of individual entrepreneurs, there will also be certain changes in this aspect in 2025. An individual entrepreneur must withhold a military levy of 5% from his employee’s salary and pay it to the budget, as a tax agent. Employees’ income tax and social security tax rates remain unchanged, at 18% – personal income tax and 22% – social security tax. It is worth noting that individual entrepreneurs of the first and second groups, whose tax address is located in the territories of hostilities or the temporarily occupied territories of Ukraine by the Russian Federation as of the date of the start of hostilities or temporary occupation, have the right not to pay military duty for the period from the first day of the month in which hostilities began in the relevant territory, the possibility of hostilities arose or the temporary occupation of such territory began, until the last day of the month in which such active hostilities were completed, the possibility of hostilities ceased or the temporary occupation was completed.
By ROMAN MYKHAILOVSKII Published in: FOCUS
