Publication date: 02.06.2024
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Simplified tax system
Тек A simplified taxation system exists in Ukraine. This system allows entrepreneurs and small businesses to simplify accounting and tax payment. The main goal of the simplified taxation system is to reduce the tax burden on small businesses, stimulate entrepreneurial activity and develop small businesses.
Within the framework of the simplified taxation system, entrepreneurs can choose between two taxation regimes: a single tax or an income tax under the simplified system. They have the right to choose the most favorable taxation regime depending on the nature of their activity and the amount of income.
A simplified taxation system has its advantages, such as reducing administrative and financial costs for accounting and paying taxes, as well as simplifying reporting procedures to tax authorities. This makes it a popular choice among small businesses and entrepreneurs.
The first group of single tax payers
The first group of taxpayers of the single tax in Ukraine includes natural persons-entrepreneurs who carry out business activities and have chosen this taxation regime. The main characteristics of the first group:
Minimum income:
Payers of the first group are required to pay a single tax of the prescribed amount, which is calculated in accordance with the legislation of Ukraine, namely 167 minimum salaries as of January 1 of the current year.
Restrictions on types of activities:
There are restrictions on the types of activities that can choose the first level of the single tax.Simplified accounting:
Entrepreneurs of the first group have the right to simplified accounting and reporting to the tax authorities.
Restrictions on the number of employees:
According to the legislation, entrepreneurs of the first group have a limit on the number of employees they can have.
In general, the first group of single tax payers in Ukraine is designed for individual entrepreneurs with a small turnover and simplified accounting and reporting needs.
The second group of single tax payers
The second group of single tax payers in Ukraine includes individual entrepreneurs who carry out certain types of activities. The main characteristics of the second group:
Activities:
Entrepreneurs of the second group provide certain services (including household services), manufacture and/or sell goods, and may also engage in activities in the restaurant industry.
Maximum income:
The amount of annual income for entrepreneurs of the second group is limited and cannot exceed the established amount, which is provided in the amount of 834 minimum wages as of the first day of the current year.
Entrepreneurs of the second group may have no more than 10 employees.
Single tax rates:
For the payers of the second group, special rates of the single tax are established, depending on the type of their activity and the amount of income.This group of single tax payers is intended for individual entrepreneurs who are engaged in various activities, including the provision of services, production and/or sale of goods, as well as restaurant business, and have a limited amount of income and number of employees.
The third group of single tax payers
The third group of single tax payers includes both individual entrepreneurs and legal entities of any organizational and legal form. The main characteristics of this group are as follows:
Maximum annual income:
Entrepreneurs of the third group can have an annual income of up to 1167 minimum wages as of the first day of the current year.
Number of employees:
There are no restrictions on the number of employees.
Entrepreneurs of this group can have as many employees as necessary for their activity.
Such a group of single tax payers allows both sole traders and legal entities, including limited and additional liability companies, joint-stock companies and other organizational legal forms, to optimally conduct their business activities, having the opportunity to work with a large amount of income and number of employees.
