The Increase in Taxes Provoked a Mass Closure of Entrepreneurs in Ukraine.

Ukraine continues to witness a mass closure of individual entrepreneurs due to the increasing tax burden. According to the YouControl.Market portal, a total of 254,288 entrepreneurs closed their activities in 2024, with 28,690 individual entrepreneurs closing in March - the highest number of closures in the year.

The retail sector turned out to be the most vulnerable, with over 29 thousand closures of individual entrepreneurs, which is 44.8% more than in the previous year.

The IT sector was also hit hard, with nearly 16 thousand closures, which is 65.9% more, as well as the sector of other services with 9.7 thousand closures, which is 60.8% more than last year.

A study by the 'Opendatabot' company, which involved 32 thousand respondents, showed that the situation may worsen. 27% of surveyed individual entrepreneurs plan to cease activities, and 62% of them indicated that the main reason is the increasing tax pressure.

Analysis of the reasons for business closures showed that besides the tax burden, 18.8% of entrepreneurs (1,619 individuals) faced problems in doing business, and 1.9% (161 individuals) ceased activities due to personal reasons.

Interestingly, the largest share of surveyed entrepreneurs comes from the retail sector (24.6%) and information technologies (21%), which already have the highest closure rates in 2024.

More details on the new taxes and mandatory payments awaiting Ukrainians in 2025 can be found in our previous materials.