The authorities plan to revise the taxation system for individual entrepreneurs (IEPs) in Ukraine. According to the new National Revenue Strategy until 2030, approved by the Cabinet of Ministers on December 27, it is envisaged to reform the classification of IEPs by groups and introduce different tax rates for different types of activities. This was announced by Yaroslav Zheleznyak, First Deputy Head of the Parliamentary Committee on Finance, Tax and Customs Policy.
According to the proposed changes, legal entities from the 3rd and 4th groups of the “simplified” tax system will no longer be able to use the simplified taxation system. Their tax rates will gradually increase to the level of regular income tax.
As for individual entrepreneurs, the second and third groups of individual entrepreneurs will be combined into one. Tax rates for them will be different, ranging from 3% for trade to 17% for certain types of services. The increase in these rates will be carried out in stages. Also, for this category of individual entrepreneurs, the use of a payment transaction registrar (PRO), both classic and software, will be mandatory.
Individual entrepreneurs in the first group will be limited in terms of activities, and their tax will be calculated based on the income received, rather than a fixed amount.
In connection with the reform, the tax base for individual farmers of the 4th group will be expanded. This will happen simultaneously with the start of taxation based on mass land valuation, as provided for in the government plan.
It is noted that these changes will be implemented in stages during 2025-2027, also taking into account the planned changes in administration. Previously, such changes in the taxation system for individual entrepreneurs in Ukraine were identified by the head of the Rada's tax committee, Danylo Hetmantsev, emphasizing the need to adapt to the best practices of countries that have already gone through a similar path, in particular, Poland.
