Individual entrepreneurs face a tax increase to 15%: who will fall under the increased rate.

Who pays the 15% single tax

Individual entrepreneurs on the simplified taxation system are required to pay fixed single tax rates depending on their group. However, there is Article 293.4 of the Tax Code, which provides for cases when the 15% rate applies. Usually, this applies to violators of the simplified taxation system rules, such as exceeding the annual income limit, receiving funds from unregistered activities, and others.

• Group 1 — up to UAH 1,336,000 per year;
• Group 2 — up to UAH 6,672,000 per year;
• Group 3 — up to UAH 9,336,000 per year.

How to avoid a fine

To avoid the 15% single tax rate, individual entrepreneurs need to timely submit an application for a change of group or taxation system before the end of the quarter in which the limit violation occurred. This allows entrepreneurs to prevent fines and forced transition to another taxation system. However, for the successful implementation of this strategy, it is important to control their income.

Let us recall that some individual entrepreneurs, such as pensioners and members of agricultural enterprises, may be exempt from paying the single social contribution. It is also worth remembering the minimum income amounts that will be taxed in 2025. The increased single tax rate is 15% of income and applies to certain categories of payers who violate the rules of the simplified taxation system. Individual entrepreneurs are advised to timely submit an application for a change of group or taxation system to avoid fines and transition to other taxation systems.