Revised Single Tax Rates for Ukrainian Sole Traders Take Effect in February 2026.

Revised Single Tax Rates for Ukrainian Sole Traders Take Effect in February 2026

According to Novyny.live: Starting in February 2026, sole proprietors (FOPs) operating under Ukraine's simplified taxation system will be subject to new, group-dependent rates for the single tax. Tax authorities also retain the right to revoke a business's single tax status if violations are discovered. This system is a popular choice for small businesses and freelancers in Ukraine due to its streamlined reporting.

New Single Tax Rates

The revised single tax rates scheduled for February 2026 are as follows:

• For Group 1 FOPs, the rate will be 10% of the subsistence minimum, amounting to 332.80 UAH.
• Group 2 FOPs must pay 20% of the minimum wage, which increased to 8,647 UAH as of January 1, 2026, resulting in a payment of 1,729.40 UAH.
• For Group 3 FOPs, the rate will be 5% of their income from the fourth quarter of 2025.

The final deadlines for single tax payments are set for February 19-20, 2026. The annual income limits for sole proprietors are also being adjusted:

• For Group 1 FOPs, the limit will be 1,444,049 UAH (167 times the minimum wage).
• For Group 2 FOPs, the limit will be 7,211,598 UAH (834 times the minimum wage).
• For Group 3 FOPs, the limit will be 10,091,049 UAH (1,167 times the minimum wage).

Sole proprietors using the simplified system are permitted to accept payments only in cash or via bank transfer. Business owners must be diligent in complying with all regulations, as tax authorities can cancel their single tax status if infractions are found.

These taxation changes could significantly impact the financial planning of sole proprietors, as the new rates and income limits may require adjustments to business strategies. Entrepreneurs should factor these updates into their operations and monitor legislative changes to avoid potential fines and the revocation of their single tax status.