Замість спрощеної системи – більші податки до 17%: що готує уряд для ФОП? / Depositphotos
Reform of the simplified taxation system in Ukraine remains on the agenda. The government intends to revise the conditions for individual entrepreneurs and raise taxes. About reports RBC-Ukraine, referring to report The Ministry of Finance on the implementation of the National Revenue Strategy for 2024.
According to the document, changes in the taxation of individual entrepreneurs are scheduled for a year after the implementation of paragraph 4.2.3(b) of the Strategy. It provides for:
Control over financial transactions of entrepreneurs – the government plans to improve mechanisms for the secure use of data on the movement of funds in taxpayers’ bank accounts.
Development of an information collection policy – tax authorities will have more access to entrepreneurs’ data, albeit in a depersonalized format.
Last year, this point was not yet fulfilled.
According to the National Revenue Strategy, the «reform» of the simplified taxation system (in fact, reformatting with the abandonment of the «simplified») envisages the following innovations:
For businesses in Group 3 (legal entities):
Over the next 3 years, the single tax for companies will gradually increase to the level of the corporate income tax (18%). After that, legal entities will be prohibited from using the simplified system.
For individual entrepreneurs (2nd and 3rd groups):
Both groups will be merged into one, and the tax rate will depend on the type of activity. The minimum rate for trade will be 3%, and for some services – up to 17%.
For entrepreneurs in the 1st group:
The government will narrow the list of permitted activities to exclude highly profitable businesses. The flat tax rate will also be abolished, and the tax will now be based on real income.
Cash registers for everyone:
Individual entrepreneurs from the unified 2nd group will be required to use cash registers – conventional or software.
VAT for all on the simplified taxation system:
The VAT registration threshold will be effectively applied to all taxpayers
For farms (group 4):
The tax base for agricultural individual entrepreneurs will be expanded, and the single tax rates for agribusinesses will increase to the level of the standard income tax within three years.
Changes in doing business:
All entrepreneurs will have to keep records of goods and document their origin. This will remove the possibility of working «in the shadow» without registering goods.
As of January 1, 2025, according to the Ministry of Finance, there are 1.63 million individual entrepreneurs on the simplified taxation system in Ukraine. This is 52.5 thousand more than a year ago.
Breakdown by group:
In 2024, entrepreneurs on the simplified taxation system paid more than UAH 55.1 billion in taxes, which is UAH 17.1 billion more than in 2023.
The reform of the simplified taxation system could be a challenge for small businesses, as tax rates will increase and government control will become more intense. At the same time, the government argues that such changes are necessary to reduce tax evasion and bring the Ukrainian tax system closer to European standards.
The Ministry of Finance has stated that it has no plans to raise taxes for individual entrepreneurs in the near future.
«Legislative changes to the elements of the simplified taxation system will be considered only after the prerequisites for such a reform are met, — not earlier than the year following the year in which measures to ensure the security of data use and access to information on the volume and turnover of taxpayers’ funds in their bank accounts are deemed to have been implemented. This process will take place in public and will require discussions with the public, business and all branches of government, as well as with the involvement of international partners. Only after public discussions will the legislative changes be considered and adopted by the Verkhovna Rada of Ukraine,» the Ministry said in a statement.
It is worth noting that as a result of recent «historical» tax increases for individual entrepreneurs almost a third of entrepreneurs planned to close their business in the near future. There are also opinions about prohibition to use individual entrepreneurship and the simplified taxation system by IT professionals. Previously was reportedthat the number of «closed» sole proprietorships in Ukrainian IT increased by 157%, while the number of new registrations — fell by 20%.
Source: minfin