Skip to main content
Find a branch Contacts Tranfers and Payments

Check-list for 2026 for the individual entrepreneurs – payers of the single tax

Over recent years, the conditions of work for small business in Ukraine have been progressively changing. The income limits, tax, fee rates for different groups are growing, new penalties are introduced… Thus, let us recall the operation parameters that will apply next year to the individual entrepreneurs conducting their activity based on the simplified taxation system.

  • Small Medium Enterprises

The simplified taxation system is regulated by chapter XIV of the Tax Code of Ukraine (the TCU). The reasons and conditions of applying the above taxation system to the single tax payers are stipulated by clause 291.4 of the Tax Code of Ukraine. In particular, the business entities are entitled to choose the simplified taxation system that currently implies selection of one out of four groups. At the same time, only two groups: the third and the fourth are available for selection by the legal entities. 

General information

The single tax payers of the 1st – the 3rd groups are entitled to conduct settlements in the monetary (cash and cashless) form only. The maximum income amount is set for three first groups that is defined as of January 1 of the tax year. It depends on the minimum wage amount and does not change within the whole year. The single tax rate for the 1st and the 2nd groups is set by the decision of local government authorities as of January 1 of the budget year and does not change within the whole year in case of change of the minimum wage amount and the living minimum amount.

The individual entrepreneurs pay the single social contribution for themselves and for hired employees (if any), the legal entities – for the hired employees only. The single tax payers of the 1st, of the 2nd and of the 4th groups pay the military tax in the fixed amount, the single tax payers of the 3rd group – in the amount of 1% from the income.

If the individual entrepreneur of the 1st and of the 2nd group holds several types of activity or carries out his/her activity not at the place of his/her registration, he or she shall pay the single tax in the maximum amount.

The economic activity types that are prohibited for the individual entrepreneurs operating under the simplified taxation system are listed in clause 291.5 of article 291 of the Tax Code of Ukraine. If the business entity conducted activity of the specified types, he or she shall withdraw from the simplified taxation system and shall pay the single tax on the income resulting from such activity based on the increased rate: the individual entrepreneur – in the amount of 15%, the legal entity – in the amount of a double rate he or she had selected. It should be taken into account that, pursuant to the provisions of the Tax Code of Ukraine, the individual entrepreneurs of the 1st and of the 2nd groups are authorized not to pay the single tax, if their tax address is located in the territories of the hostilities or in the territories temporarily occupied by the rf. 

The first group

It can be chosen by the individual entrepreneurs who do not have hired empolyees, in other words who work on their own. The authorized activity types – retail trade on the market and provision of household services defined by clause 291.7 of article 291 of the Tax Code of Ukraine. The individual entrepreneurs who have chosen this group cannot be VAT-payers.

They are entitled to receive within the year the income not exceeding 167 minimum wages. In 2026, it comprises UAH 1,444,049. In case of exceeding the authorized income amount within the year, the individual entrepreneur, starting from the beginning of the quarter following the quarter, in which the allowed income amount was exceeded, shall change the group for the 2nd or the 3rd group or shall withdraw from the simplified taxation system and switch to the general taxation system.

The single tax rate for the 1st group depends on the amount of the living minimum, but cannot be smaller than 10% of this indicator. In 2026, it comprises UAH 332.80.

The specified individual entrepreneurs pay the single tax, the military tax in the amount of UAH 864.70 and the single social contribution in the amount of UAH 1,902.34 for them on the monthly basis.

They have no obligation to use settlement transactions’ registrars/ software settlement transactions’ registrars, but have to install payment terminals. They conduct only accounting of income. They report on the income received once per year within 60 calendar days following the end of the tax year.

The second group

The 2nd group can be chosen by the individual entrepreneurs working on their own or hiring employees (not more than 10 employees at the same time). For this group the list of the authorized activity types is much wider. This includes economic activity as regards provision of services, including household ones, manufacturing and/or sale of goods, activity in the restaurant business area. A special condition applies, according to which they are entitled to provide services exclusively to single tax payers and/or citizens. A number of restrictions in terms of activity types is introduced. Moreover, the representatives of this group cannot be VAT-payers.

A considerably higher income level is set for the 2nd group – 834 minimum wages. In 2026 it comprises UAH 7,211,598. If within the year the individual entrepreneur’s income exceeds the authorized income level, starting from the beginning of the quarter following the quarter, in which the authorized income amount was exceeded, he or she shall change the group for the 3rd group or switch to the general taxation system.

The single tax rate depends on the amount of minimum wage set as of January 1 of the budget year and cannot be higher than 20% of the minimum wage. In 2026 it is UAH 1,729.40. The singe tax is paid in the maximum amount, if several types of activity are conducted or if the business activity is conducted not at the place of registration.

The amounts of the single social contribution and of the military tax to be paid for the individual entrepreneur himself/herself are the same as for the 1st group – UAH 1,902.34 and UAH 864.70 respectively.

In case of conducting cash settlements, the entrepreneurs of the 2nd group shall use the settlement transactions registrars/software settlement transactions registrars and shall have payment terminals installed. But they conduct accounting of income only. They file the reporting once per year within 60 calendar days following the end of the tax year.

The third group

The third group can be selected both by the individual entrepreneurs and the legal entities. As for legal entities, the 3rd group can be selected by business entities of any organizational and legal form. For this group the restrictions in terms of activity types are set by clause 291.5 of article 291 of the Tax Code of Ukraine only. In other words, they are entitled to conduct much more types of activity than the individual entrepreneurs of the 1st and of the 2nd groups. The number of hired empolyees for such business entities is not limited.

For the 3rd group the single income amount is set – 1,167 minimum salaries. In 2026 it is UAH 10,091,049. They pay the single tax in the amount that is defined as percentage from the income. It can be 5% without VAT or 3%+ VAT. If the individual entrepreneur has chosen 5%-rate, only the registration of income is conducted, if 3% + VAT – of income and expenses. The legal entities shall conduct accounting. VAT-payers shall also hold tax accounting of the VAT, issue tax invoices and report monthly on the VAT. The payers of the single tax of the third group, in case of exceeding the maximum authorized income amount shall withdraw from the simplified taxation system and switch to the general taxation system starting from the beginning of the new quarter.

The individual entrepreneurs pay the military tax in the amount of 1% of the income. If no income is registered, there is no taxation base for charging the single tax and military tax.

The entrepreneurs pay the single social contribution for themselves regardless of availability or absence of the income, in the amount not lower than the minimum insurance contribution. In 2026 it will comprise UAH 1,902.34.

In case of making cash settlements, both individual entrepreneurs and legal entities shall use settlement transactions registrars/software settlement transactions registrars or payment terminals. The reporting period which is equal to a quarter is set for them. 

The fourth group

This group can be chosen solely by agricultural good manufacturers:

- legal entities regardless of the organization and legal form, whose share of production of agricultural goods in the previous tax (reporting) year is equal or exceeds 75% or individual entrepreneurs conducting their activity exclusively in the form of a farm enterprise registered in compliance with Law of Ukraine On the Farm Enterprise, subject to meeting at the same time the conditions below:

- they carry out growing, fattening of agricultural products, harvesting, catching, processing of such products grown or fattened by themselves and their sale;

- they conduct business activity (except for supply) at their tax address;

- they do not use labour of hired employees;

- only the members of such individual’s family according to the definition provided in part two of article 3 of the Family Code of Ukraine are members of such farm enterprise;

- the area of agricultural lands and/or water fund lands owned and/or used by the farm enterprise members comprises not less than 0.5 hectares, but does not exceed 20 hectares accumulatively.

The business entities of the types listed in clause 291.5-1 of article 291 of the Tax Code of Ukraine cannot choose the 4th group.

The taxation base for the single tax payers of the fourth group is the area of agricultural lands and/or water fund lands owned by the agricultural good manufacturer or provided to him/her for use. The individual entrepreneurs – single tax payers of the 4th group shall calculate annually on their own the tax amount as of January 1 and not later than February 20 of the current year, shall submit to the relevant control authority at the place of the taxpayer’s and of the land plot’s location the tax return for the current year according to the applicable form.

The form of the Tax Return is approved by Order of the Ministry of Finance of 19.06.2015 No. 578 (in the version of the Order of the Ministry of Finance of the 31.01.2025 No. 57).

For annual confirmation of the status of the single taxpayer of the 4th group, the taxpayers shall file, not later than February 20 of the current year, the general Tax Return for the current year on the whole area of the land plots, from which the tax is charged (agricultural lands (arable lands, hayfields, pastures, perennial planting), and/or water fund lands of inland water bodies (lakes, ponds and water reservoirs) – to the control authority at their place of location (their place of registration with the tax authorities).

The Reporting Tax Return for the current year shall be filed separately in relation to each land plot – to the control authority at the place of such land plot location.

In addition, the data (the statement) on the availability of the land plots shall be submitted to the control authority at the place of location of the land plots.

Besides this, the legal entities shall file the calculation of the share of the agricultural goods manufacturing to the control authority at the land plot’s place of location. The form of the calculation is approved by the Order of the Ministry of Agricultural Policy of the 26.12.2011 No. 772;

The income indicators of the previous year are considered while making calculations. When compiling the Calculation, accounting data is the source of information.

The tax is paid quarterly within 30 calendar days following the last calendar day of the tax (reporting) quarter, in the following amounts:

  • in quarter I – 10%;
  • in quarter II – 10%;
  • in quarter III – 50%;
  • in quarter IV – 30%.

The individual entrepreneurs pay the military tax in the similar manner as individual entrepreneurs of the 1st and 2th groups  - in the amount of 10% of the minimum wage. In 2026, – UAH 864.70. The legal entities pay the military tax for waged employees only based on 5%-rate.

The members of the farmer enterprises set up by individual entrepreneurs pay the single social contribution for themselves, if they are not registered as single social contribution payers due to other reasons (for example, are hired employees). The procedure of paying the single social contribution is similar to the one that applies to individual entrepreneurs – in the amount not less than the minimum insurance contribution per month. In 2026 is comprises UAH 1,902.34.

In case of sale of goods grown or fattened by themselves, they have to use payment terminals.Natalia Shcherbak, advisor on accounting and taxation issues