Changes in Taxes for Entrepreneurs from 2026: New Rates and Increased Responsibility.

According to ТСН: Starting from January 1, 2026, new rates of the simplified tax and military tax will apply to individuals - entrepreneurs who operate in the first and second groups of simplified taxation.

The State Tax Service has announced that the maximum monthly amount of the simplified tax for entrepreneurs in the first group will be 332.80 UAH, which does not exceed 10% of the subsistence minimum for working individuals.

For entrepreneurs in the second group, the maximum amount will be 1,729.40 UAH, which corresponds to no more than 20% of the minimum wage. The final amount of the fixed rate will continue to be determined by village, settlement, and city councils, depending on the type of business and calculations for the calendar month.

Double Rates and Their Application

Moreover, the incomes of entrepreneurs in groups 1-3 may have an increased rate of 15% if:

• the income limit has been exceeded

• income has been obtained from activities not included in the register of taxpayers of the simplified tax

• the calculation was made illegally

• the entrepreneur is engaged in an activity prohibited for the simplified system (except for taxpayers of the third group who are electronic residents)

• the activity of the entrepreneur in the first or second group is not provided for this group

We remind you that the International Monetary Fund insists on the introduction of a mandatory value-added tax for entrepreneurs if their annual income exceeds 1 million UAH. This change aims to expand the tax base, prevent the fragmentation of businesses, and make the use of “Simplified” as an alternative to employing workers more difficult. So far, the government has not presented any official plans for the bill with amendments to the Tax Code of Ukraine.

The National Bank of Ukraine proposes to complicate and control the procedure for closing individual entrepreneurs (FOP) in order to combat schemes that exploit fake entrepreneurs for illegal financial operations.

These changes to tax rates and legislative initiatives will have a significant impact on the business environment for entrepreneurs in Ukraine. The implemented measures foresee a longer fight against tax schemes and promote compliance with transparency in financial transactions. How the situation will develop depends on the response of entrepreneurs and authorities to these innovations.