Publication date: 05.06.2024
What taxes should be paid by a sole proprietorship: expert opinion of a tax lawyer
Doing business in Ukraine requires entrepreneurs not only to have professional skills in their field, but also to have a deep understanding of tax legislation. This is especially true for individual entrepreneurs (LPOs), who often face questions: what taxes to pay, when, and how to avoid fines? In such situations, the consultation of a tax lawyer is indispensable.
Who is a tax lawyer and how can he help?
A tax lawyer is a specialist in the field of tax law who specializes in providing legal services in taxation matters. His main task is to protect the client's interests in relations with tax authorities. Consultation of a tax lawyer online or offline can cover a wide range of issues: from choosing the optimal taxation system to representing interests in tax disputes.
In Kyiv and other cities of Ukraine, the services of a tax lawyer are especially popular among business owners, because they are the ones most often in need of professional support in taxation matters. A tax lawyer not only explains the legislation, but also helps to apply it correctly in order to avoid possible problems with the tax inspectorate.
What taxes must the FOP pay?
1. Single tax: The majority of FOPs in Ukraine choose a simplified taxation system. Depending on the group (1-3), the single tax rate can be from 10% to 5% or even a fixed amount.
2. EUV (Unitary social contribution): Every FOP is obliged to pay EUV, even if it has no income. In 2023, the minimum ESSV is UAH 1,474 per month.
3. Personal income tax and military levy: FPOs on the general taxation system pay 18% personal income tax and 1.5% military levy on net profit.
4. VAT: If the annual turnover of the FOP exceeds UAH 1 million, it must register as a VAT payer and pay 20% tax.
These basics are important, but every situation is unique. Therefore, consulting a tax lawyer will help you understand the nuances and choose the most profitable model of taxation.
How to avoid tax disputes?
Tax disputes are conflicts between taxpayers and the tax inspectorate. They may arise due to different interpretations of laws, errors in reporting or during tax audits. A tax dispute lawyer is a professional who helps resolve such conflicts in favor of the client.
In order to prevent disputes, a Kyiv tax lawyer advises:
1. Keep accurate records of income and expenses
2. Submit reports on time
3. Keep all original documents
4. Regularly consult with specialists
If a dispute has already arisen, a tax dispute lawyer will help appeal the decision of the tax office, prepare the necessary documents and represent your interests in court.
Сonsultation with a tax lawyer saving or spending?
Some believe that consulting a tax lawyer is an unnecessary expense. But experienced entrepreneurs know: timely advice from a specialist can save significant money. For example, a tax lawyer can:
1. To optimize the tax burden in a legal way
2. Protect from fines for reporting errors
3. Return overpaid taxes
4. Defend interests in court, avoiding large fines
In many cases, you can get a free consultation from a tax lawyer. This can be an initial meeting to assess the situation or an online consultation through the law firm's website.
A lawyer in the tax inspectorate: friend or foe?
Often, FPOs encounter a tax inspectorate lawyer during inspections or dispute resolution. It is important to understand: this specialist represents the interests of the state, not the taxpayer. Therefore, in such situations, it is better to have your own tax lawyer.
Your tax lawyer will:
1. Check the legality of inspectors' actions
2. Advise you during the inspection
3. Deny unreasonable demands
4. Appeal the decision of the tax office
The support of a lawyer is especially important when it comes to tax audits. A lawyer who specializes in such matters knows all the intricacies of the procedure and can effectively protect your rights.
Where to find a good tax lawyer?
In large cities, such as Kyiv, the choice of tax lawyers is quite wide. But how to choose the best? Pay attention to:
1. Specialization (tax law itself)
2. Experience in tax disputes
3. Customer reviews
4. Publications and speeches at professional forums
Many law firms offer online consultations, which is convenient for entrepreneurs from other cities. Consultation of a lawyer on tax issues online is in no way inferior to a personal meeting, but saves your time.
Conclusions: why does a sole trader need a tax law lawyer ?
The tax legislation of Ukraine is complex and changes frequently. What was legal yesterday may result in fines today. Therefore, it is vitally important for a sole proprietorship to have "its" lawyer in the field of tax law.
The services of a tax lawyer are not an expense, but an investment. It will help:
1. Pay taxes correctly
2. Optimize the tax burden
3. Avoid disputes with the tax office
4. Protect interests in court
Remember: it is better to prevent a problem than to solve its consequences. Regular consultation with a lawyer who specializes in tax deductions and other aspects of tax law is your key to a smooth and profitable business.
Don't wait for problems to arise. Contact a tax lawyer today so that your business can flourish tomorrow without hindrance from the tax inspectorate.
