From 2025, dormant individual entrepreneurs are required to pay the unified social tax: who is exempt.

According to inkorr.com: Starting from 2025, significant changes in tax legislation regarding 'dormant individual entrepreneurs'—those officially registered but not receiving income—have occurred in Ukraine. Previously, they had a military exemption that allowed them to suspend the payment of the unified social tax (UST), but as of January 1, 2025, this exemption has been canceled for all individual entrepreneurs under the single tax. This was

reported

by tax consultant Mykhailo Smokovych on his YouTube channel.

Obligations for 'dormant' individual entrepreneurs

Thus, 'dormant' individual entrepreneurs are now required to pay at least 1,760 UAH monthly.

The cancellation of the exemption has significantly increased the financial burden on entrepreneurs. However, legislation maintains a full exemption from the payment of UST for certain categories of socially protected individuals. These entrepreneurs have

the right not to pay UST

even when receiving income.

Who is exempt from paying UST

• Pensioner individual entrepreneurs and persons with disabilities receiving appropriate benefits;

• Officially employed individual entrepreneurs (including joint workers) for whom the UST is paid by the employer;

• Active military personnel;

• Persons on three-year maternity leave for child care.

Tax obligations for individual entrepreneurs

In addition to UST, 'dormant' entrepreneurs must also consider the payment of the single tax (ST) and the military tax (MT). Obligations depend on the selected group of the simplified tax system.

Groups I and II of the simplified system:

For these groups, entrepreneurs must pay fixed rates for ST and MT. Regardless of income, entrepreneurs are obliged to pay the specified amounts even in the absence of income. As of October 2025, these amounts are:

• ST: 303.80 UAH/month (Group I) and 1,600 UAH/month (Group II).

• MT: 800 UAH/month (for both groups).

Group III of the simplified system:

For this group, taxes are paid as a percentage of income. If there is no income, Group III individual entrepreneurs are not obliged to pay ST and MT, but UST still needs to be contributed.

General taxation system:

Only entrepreneurs in the general system can have zero tax obligations (including UST) in the absence of profit. This is the only system where 'dormant' status completely exempts from all payments.

How to legally reduce financial losses for individual entrepreneurs

Tax consultant Mykhailo Smokovych notes:

There are several ways to minimize tax payments in the absence of income

. Entrepreneurs who are not making profits but do not want to close their registration can use the following legal options:

1. Tax holidays. Submitting an application allows for not paying taxes for just one month.

2. Transition to Group III or the general system. Transitioning to Group III allows avoiding ST and MT in the absence of income, but obliges to pay UST. Transitioning to the general system completely exempts from all tax obligations (including UST) in the absence of profit.

3. Closing individual entrepreneurship. If the activity is suspended for a long time, the most rational step would be to halt registration, as there is no sense in maintaining it and paying UST.

Important changes in the tax system affecting income-less entrepreneurs in Ukraine have occurred. It is important to note that despite new obligations, entrepreneurs can still find options to reduce their financial obligations. In particular, there is the possibility of transitioning to other taxation systems or even temporarily halting registration if no activity is being conducted. This underlines the need for careful consideration of the innovations in tax legislation.