The National Revenue Strategy envisages the unification of the 2nd and 3rd groups of individual entrepreneurs and a shortened list of activities for the 1st group.
This is stated in the document approved by the Cabinet of Ministers, Ukrainian News Agency reports.
The document itself provides for gradual changes from 2025 to 2027.
And besides, the changes planned in the tax administration strategy have to be completed.
According to Yaroslav Zhelezniak, a member of the Verkhovna Rada from the Holos faction, there will be a 3-year transition period for legal entities of the 3rd and 4th groups, when the rate will gradually increase to the usual income tax.
Upon completion, legal entities will not be able to be on the simplified system.
For individual entrepreneurs of the 2nd and 3rd groups:
- there will be one united group
- rates will vary from 3% for trade to 17% for some services. They will rise gradually.
- compulsory registrar of settlement operations (classical or software).
For individual entrepreneurs of the 1st group:
- shortened list of activities
- income tax, not a flat rate
For individual farmers of the 4th group:
- for individuals, the tax base will be expanded with the start of taxation based on the mass assessment of land
Registration and closing of individual entrepreneurs will be automatic with the opening/closing of a bank account, without a separate registration procedure.
The main proposal of the National Revenue Strategy for Personal Income Tax is a progressive scale of taxation.
For high incomes, there will be another one or two higher rates.
In addition, it is planned:
- personal social assistance instead of the minimum non-taxable income
- revision of personal income tax benefits and exclusions
- revision of the system for refunding a part of taxes from some expenses (education of children, starting a business, etc.).
Changes are planned only after changes in administration and simplification reform within 3-5 years.
As Ukrainian News Agency reported, earlier the Chairman of the Committee of the Verkhovna Rada of Ukraine on Finance, Tax and Customs Policy, Danylo Hetmantsev, said that Ukraine is considering a model of taxation of individual entrepreneurs based on the example of Poland.
For example, trade is taxed at 3%. Production is taxed low. And service taxes range from 12% to 20%.
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