On January 1, 2024, new taxation rules for individual entrepreneurs (IEs) came into force in Ukraine. The changes were driven by an increase in the minimum wage and the subsistence minimum, which affected the tax liabilities of entrepreneurs.

This is due to the linking of income limits for individual entrepreneurs to the minimum wage. Starting from January 1, 2024, new limits have been set for different groups of individual entrepreneurs:

The annual income for the first group (167 minimum wages) is UAH 1.185 million;
For the second group (834 minimum wages) - UAH 5.921 million;
For the third group (1,167 minimum wages) - UAH 8.285 million.

In case of exceeding the established limits, individual entrepreneurs automatically switch to another taxation group or the general taxation system.

The single tax rates for individual entrepreneurs depend on their group and income. Individual entrepreneurs in the first group pay 10% of the subsistence minimum (starting from January 1, UAH 302.3), and those in the second group pay 20% of the minimum wage (UAH 1,562). Actual tax rates may vary at the discretion of local authorities.

The single social contribution (SSC) rates for individual entrepreneurs are also changing. Starting in 2024, entrepreneurs will pay 22% of the minimum wage, which will increase to UAH 1,562 in January and UAH 1,760 in April.

These tax changes pose new financial challenges for individual entrepreneurs, requiring them to adapt to the new rates and limits. At the same time, they may affect the overall financial stability of entrepreneurs and require careful planning to maintain business efficiency.