In Ukraine, there is a special single tax rate, which not all individual entrepreneurs know about. Some business representatives will have to pay 15% of their income instead of the traditional rate for their group. The question arises as to who the increased tax is for. This is stated in the Tax Code of Ukraine.
Who pays 15% of the single tax
Individual entrepreneurs on the simplified system have fixed single tax rates: Group 1 pays 302.8 UAH/month (10% of the subsistence minimum for able-bodied persons), Group 2 – 1,600 UAH/month (20% of the minimum wage), Group 3 – 5% of quarterly income. Plus, a military levy of 800 UAH/month or 1% of profits is provided.
At the same time, there is Article 293.4 of the Tax Code of Ukraine, which lists the cases of collection of 15% of the single tax. The increased amount is applied:
to the amount of excess of the annual income limit;
to funds received from activities not specified in the register of single tax payers of groups 1 or 2;
to income received when applying a different calculation method;
to funds received from activities that do not give the right to be on the simplified taxation system.
It turns out that 15% of the EP must be paid by individual entrepreneurs-violators who did not comply with the rules for conducting business activities on the simplified system. The most common reason for imposing a fine is exceeding the annual income limit. As of 2025, the following maximum amounts of allowed profit are in effect:
1,336,000 UAH – for group 1;
6,672,000 UAH – for group 2;
9,336,000 UAH – for group 3.
The 15% rate is charged on the amount of excess annual income. Plus, entrepreneurs are punished by forced transfer to another group, where the limits are higher, or to the general taxation system, where there are no restrictions on annual income at all.
How an individual entrepreneur can avoid a fine
The increased single tax rate does not apply if the entrepreneur independently submits an application to change the group or system before the end of the quarter in which the overlimit occurred. This is an action to prevent it: until the regulatory body notices a violation, you can switch to other conditions for conducting business activities.
Of course, this will work if you carefully track your income. If an individual entrepreneur does not follow the limit or does not know about the existence of such a rule at all, then he will not learn about the problem until the tax office notifies you of the collection of the increased EP rate and forced transfer to another group.
Recall that some Ukrainians want to be exempted from paying the single social contribution. These are individual entrepreneurs-pensioners and members of farms who receive an old-age pension or are persons with disabilities and social benefits.
We also wrote about the minimum amounts of income that are taxable in 2025. For example, taxes must be paid on charitable non-targeted assistance if the amount exceeds 4,240 UAH/year, on scholarships – 4,240 UAH/month, on education funds – 24,000 UAH/month.
