The authorities plan to revise the taxation system for individual entrepreneurs (PPO) in Ukraine. According to the new National Revenue Strategy until 2030, which was approved by the Cabinet of Ministers on December 27, reform of the distribution of FOPs by groups and the introduction of different tax rates for different types of activities are foreseen. This was announced by Yaroslav Zheleznyak, the 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 "simplified" groups will no longer be able to use the simplified taxation system. Their tax rates will gradually increase to the level of ordinary income tax.
As for FOPs, the second and third groups of individual entrepreneurs will be merged into one. Tax rates for them will be different, ranging from 3% for trade to 17% for certain types of services. The increase of these rates will be carried out in stages. Also, for this category of FOPs, it will be mandatory to use a settlement operations registrar (RPO), both classic and software.
Natural persons-entrepreneurs of the first group will be limited by the types of activities, and their tax will be calculated on the basis of the income received, and not on a fixed amount.
In connection with the reform, the tax base will be expanded for FOP farmers of the 4th group. This will happen simultaneously with the start of taxation based on the mass assessment of land, as provided for in the government plan.
It is noted that these changes will be implemented in stages during 2025-2027, taking into account the planned changes in administration. In advance, such changes in the system of taxation of FOPs in Ukraine were determined by the head of the tax committee of the Council, Danylo Hetmantsev, emphasizing the need to adapt to the best practices of countries that have already gone through a similar path, in particular, Poland.
