From January 1, 2025, the payment of the Unified Social Contribution (USC) will be resumed in Ukraine, which will be paid to all entrepreneurs working under the forgiven taxation system.
Points of attention
- The Unified Social Contribution (USC) of UAH 1,760 per month will be mandatory for all individual entrepreneurs in Ukraine from 2025.
- Only pensioners, persons with disabilities, and certain sole proprietors can voluntarily pay the Social Security Contribution.
- In order to avoid the Social Security Contribution, entrepreneurs must close their business on the simplified taxation system by 2025.
- The recent Ukrainian Parliament's decision canceled the 'retroactive' tax increase for individual entrepreneurs, including changes in tax dates and fines for failing to file reports on controlled foreign companies.
- Payment of the Unified Social Security Tax will be restored for individual entrepreneurs from 2025, making it compulsory for all self-employed individuals to pay the social security tax.
What is the size of the SSC provided for individual entrepreneurs in 2025?
According to tax consultant Mykhailo Smokovich, even entrepreneurs with no income will pay.
Since March 2022, payment of the single income tax has been in effect in Ukraine on a voluntary basis, which allowed individual entrepreneurs in the third simplified taxation group not to pay the single income tax in the event of a lack of income.
But from 2025, payment of a single social contribution will become mandatory for all entrepreneurs on a simplified system.
Thus, they will have to pay 1,760 UAH every month.
Who will be able to retain the right to voluntarily pay the Social Security Contribution?
Only three categories of the population will be able to voluntarily pay a single social contribution in 2025:
pensioners;
people with disabilities;
Sole proprietors who have a main place of work and whose employer pays the SSC.
In order for a person not to have to pay a single social contribution, he or she needs to close the individual entrepreneur on the simplified taxation system. This should be done by 2025.
What is known about the Council's decision to cancel the tax increase for individual entrepreneurs?
On December 4, it became officially known that the Ukrainian Parliament voted in favor of draft law No. 9319, which, in particular, provides for the cancellation of the "retroactive" tax increase for individual entrepreneurs.
The bill concerns the taxation of fees for gig contracts for residents of "Diya.City".
In addition to regulating gig contracts, a number of amendments were made to the document:
An amendment has been made to the tax bill No. 11416-d, which changes the date of introduction of new taxes for individual entrepreneurs and legal entities of the single tax "retroactively" from October 1, 2024 to January 1, 2025.
The amendment provides for a reduction in the rent rate for kaolin mining.
Until the end of the war, entrepreneurs will not be fined for failing to file reports on controlled foreign companies (CFCs).
