New Tax Obligations for Ukrainian Sole Proprietors Take Effect in July 2026: What You’ll Owe.

Upcoming Tax Law Changes for Private Entrepreneurs

According to Novyny.live: Starting in July 2026, individual entrepreneurs (known as FOPs in Ukraine) will face updated tax rates depending on their group. These new obligations include a military levy, a single tax, and a unified social contribution. The changes will directly affect how much FOPs must pay and the conditions for those payments. For context, Ukraine’s tax system categorizes entrepreneurs into groups based on income and business type, and these reforms aim to adjust financial burdens across the board.

Tax Rates by FOP Group

• For Groups 1 and 2, the monthly military levy is set at 864.70 UAH, which equals 10% of the minimum wage.
• Group 3 FOPs will pay a military levy of 1% of their income.
• Group 1 entrepreneurs must remit a single tax of 332.80 UAH per month, representing 10% of the subsistence minimum for working-age individuals.
• Group 2 FOPs will owe 1,729.40 UAH monthly, which is 20% of the minimum wage.
• For Group 3, the single tax rate is set at 5% of income.

Additionally, the minimum monthly unified social contribution for FOPs in July 2026 will be 1,902.34 UAH. Meanwhile, the personal income tax rate for individuals remains at 18%, and the military levy for individuals stays at 5%. The unified social contribution rate for individuals will continue at 22%.

It’s also worth noting that personal farming operations are limited to a maximum of 2 hectares. The deadline for paying property tax is set for July 1. These legislative adjustments are designed to simplify business operations for entrepreneurs while ensuring steady budget revenues.

The tax law changes taking effect in July 2026 could significantly reshape the financial obligations of individual entrepreneurs, while also aiming to stabilize state budget income.

The introduction of new tax and levy rates is intended to optimize the tax load across different entrepreneur groups, potentially encouraging growth in Ukraine’s small and medium-sized business sector.