«In 2025, individual entrepreneurs will be obliged to pay the unified social tax again», — Verkhovna Rada Tax Committee

The suspension of the provision of the Law on the Unified Social Contribution, which allowed individual entrepreneurs to pay it voluntarily during the war, is provided for in clause 3 of the final provisions of the draft state budget.

This was reported by the member of the Verkhovna Rada Committee on Taxation and Customs Policy Nina Yuzhanina in Telegram. The MP recalls that the amendment to the Law introduced at the beginning of Russia’s full-scale invasion of Ukraine provided for the voluntary payment of the Unified Social Tax by individual entrepreneurs from March 1, 2022, until the end of martial law and 12 months afterwards. Sole proprietors are still entitled not to accrue, calculate and pay the USC for themselves.

Nina Yuzhanina adds that the tax authorities have been emphasizing all along that the payment of the unified social contribution affects the insurance period. However, with the adoption of the submitted draft budget with this provision, the pre-war tax system can be considered fully restored.

Earlier, this was reported by the publication «RBC-Ukraine»referring to the explanatory note to the project № 12000 budget for 2025. Yuzhanina’s announcement was an official confirmation of the government’s intention to abolish the voluntary nature of the unified social contribution. The draft law provides for «the resumption of the payment of the single social contribution to individual entrepreneurs, in particular those who have chosen the simplified taxation system».

The publication reminds that the minimum amount of the single social contribution is 22% of the minimum wage. Since its value will not change in 2025, the calculation is based on the amount of ₴8000. Thus, an individual entrepreneur will be obliged to pay ₴1760 per month, or ₴21,120 per year.

The tax increase bill also stipulates that starting from October 1, 2024, individual entrepreneurs will pay a 10% military duty of the minimum wage for Groups 1, 2, and 4, and Group 3 individual entrepreneurs — 1%.