Ukraine is preparing another tax reform that could significantly change the rules of operation for individual entrepreneurs. According to media reports, the government is considering several options for updating the simplified system, and some of the solutions may affect the most popular groups of individual entrepreneurs working in the services, trade and IT sectors.
One of the key areas of the reform may be a revision of income limits for the simplified system. According to sources, the government is studying the possibility of reducing the maximum turnover for the second and third groups, which will actually force some entrepreneurs to switch to the general taxation system. Experts note that this may be due to the desire to increase budget revenues and reduce the share of shadow income.
An increase in single tax rates for certain categories of business is also being discussed. These are areas with high profitability, where the tax burden may increase gradually, in several stages. For microbusiness, on the contrary, the current conditions may be left in place or a transitional period may be introduced to avoid a sharp blow to the smallest entrepreneurs.
Separately, the issue of reformatting the second group of individual entrepreneurs, which covers a significant part of small businesses, is being considered. According to journalists, the authorities believe that the current model does not correspond to the real structure of the market, and some entrepreneurs actually operate as small companies, using a simplified system to minimize taxes.
Analysts warn that the reform may have an ambiguous effect: on the one hand, it will increase budget revenues, and on the other, it will create an additional burden on businesses operating in conditions of high instability and reduced demand. Entrepreneurs are already expressing concern, because any changes in tax rules will take time to adapt and may affect their financial stability.
