In Ukraine, preparation for the reform of a simplified taxation system (SCO) . The Ministry of Finance has confirmed that entrepreneurs should be expected to increase taxes and strengthen control . This is stated in the Ministry of Finance's report on the implementation of the National Revenue Strategy in 2024 .
The reform is expected to start after a number of conditions , in particular, the implementation of measures to control the financial transactions of entrepreneurs.
What will change for business?
According to the national income strategy , the following basic innovations are provided:
1. The third group of SCO for legal entities
- Within three years, a single tax rate for legal entities will gradually increase to 18% (normal income tax).
- After that, legal entities will not be able to work on a simplified system.
2. Combining second and third groups for FOPs
- Introduction differentiated rates of income tax:
- The minimum rate is 3% for trade.
- Maximum - 17% for a number of services.
3. View the first group of FOPs
- Reduction of the list of activities that can use the first group.
- Introduction of actual income instead of fixed collection.
4. Required cash registers (PPOs)
- All FOPs of the united second group should use cash registers (PPOs or PPO software).
5. Changes for agricultural business
- Farmers (FOPs) will remain in the fourth group of SCO , but the tax base will expand.
- For agricultural legal entities, the tax rate will increase up to 18% three years
6. Strengthening tax control
- of doing business without compulsory accounting and documentary confirmation of the origin of goods is abolished .
FOPs become more but taxes collect even more
Despite the challenges for entrepreneurs, the number of FOPs operating on a simplified system is increasing.
- As of January 1, 2025, 1.63 million FOPs were registered in Ukraine , which is 52.5 thousand more than in 2024.
- The largest FOPs in the third group - 800.2 thousand people (49.2%).
- total tax revenues from FOPs for 2024 increased by UAH 17.1 billion and amount to UAH 55.1 billion .
What does it mean to entrepreneurs?
- The second and third groups will be combined , which can affect the amount of taxes for small businesses.
- For legal entities, the simplified system will actually disappear , forcing them to switch to a general taxation system.
- Increased control over income and expenses will make business without careful documentary accounting.
- small entrepreneurs will have to go to cash registers , which will increase their costs.
When to wait for the change?
The reform will begin after the key conditions are fulfilled , in particular, the implementation of a system of control over the circulation of funds in banks. are expected to come into force in 2026 .
The authorities substantiate the reform with the need to increase tax revenues and fight the shadow business. However, for many FOPs, these changes can mean a significant increase in tax burden .
