Ukrainian Sole Traders in 2026: Who Qualifies for an Exemption from Social Security Contributions.

Social Security Contribution Exemptions for Sole Traders in 2026

According to Novyny.live: Sole proprietors in Ukraine will be required to pay taxes in 2026, but certain categories of these entrepreneurs are eligible for an exemption from the Unified Social Contribution (USC). This policy allows specific business entities to decide whether to pay this mandatory contribution. The Ukrainian tax system includes these exemptions to provide targeted support during a period of significant economic strain.

The list of entrepreneur categories entitled to forgo the USC payment includes:

• Individuals with disabilities;
• Pensioners;
• Mobilized Ukrainian citizens;
• Other groups eligible for benefits.

Specifically, individuals with disabilities can claim the exemption if they receive pension or social welfare payments. Pensioners who have retired due to age or length of service also qualify. Sole proprietors engaged in independent professional activities, as well as members of farming households who are pensioners or have disabilities, are likewise entitled to the USC exemption.

Furthermore, hired employees are exempt from paying the USC if their employer covers the contribution, even if this is not their official place of employment. Other preferential categories include business entities on the general taxation system that reported no profit for the period, mobilized Ukrainians, and contract service personnel. Individuals whose business is located in temporarily occupied territories, as well as persons deprived of liberty due to armed aggression against Ukraine (for the period of captivity and for six months after release), are also not required to pay the USC.

USC Amount and Declaration Deadlines

Starting January 1, 2026, the minimum USC amount will be linked to the minimum wage, which will be set at 8,647 hryvnias per month. In January, the USC will reach 1,902.34 hryvnias, which is 22% of the minimum wage. The quarterly USC payment will be 5,707.02 hryvnias, and the annual amount will be 22,828.08 hryvnias. The maximum base for USC calculation cannot exceed 20 times the minimum wage, amounting to 38,046.80 hryvnias per month.

Sole proprietors in Group 1 must file their annual declaration by March 1, 2026, while those in Group 3 must do so by February 9, 2026.

Introducing USC payment exemptions for specific categories of sole proprietors can significantly ease the financial burden on the most vulnerable population groups, such as individuals with disabilities and pensioners.

Source: tax expert

This decision reflects the state's aim to support entrepreneurs amid the economic challenges Ukraine faces, particularly under martial law. The emphasis on timely filing of declarations also underscores the necessity for sole proprietors to fulfill their tax obligations, which will help ensure budget stability in a rapidly changing economic environment.