What taxes are paid by group 2 sole proprietors

In recent years, tax legislation has been revised several times, and in 2025, Group 2 sole proprietors will pay taxes in a new way. The changes came into force on January 1, so paying the military fee and revising the usual system is already relevant. A detailed review will help you prepare your declaration correctly and in a timely manner, and most importantly, make all payments in full using the correct details.

How much tax does a sole proprietor of group 2 pay and when

The good news is that the maximum annual income has increased. And while it used to be UAH 5,921,000, this year it has been revised to UAH 6,672,000, which was expected. An important feature of this group is fixed amounts that do not depend on the actual income received. Therefore, if the profit was 0 during the month, payments will still have to be made. The amount depends on the minimum wage approved in the budget. How much tax should IEs of group 2 pay and what has changed in 2025:

• Single tax. The rate remained unchanged - up to 20% of the minimum wage. As of today, this amount is UAH 1,600 per month.
• Unified Social Contribution. 22% of the minimum wage. But while earlier, during the martial law period, the payment was optional, now it has become mandatory.
• Military duty. An innovation, the amount of which is 50% of the single tax rate - UAH 800 per month.

Thus, taking into account all expenses, the tax amount for a group 2 sole proprietor will be UAH 4,160, which includes: UAH 1600 - single tax, UAH 800 - military fee, UAH 1760 - single social contribution. Those who have previously paid the unified social tax will feel virtually no changes: only UAH 800 of the military fee will be added. But in case of non-payment, in 2024, the payment exclusively on the single tax amounted to 1420 per month, and the changes are noticeable. The fact that this item of expenditure has increased has hit many individual entrepreneurs hard.

When is the report due?

There have also been some changes in reporting, which is important to note. In the absence of employees, the declaration is still submitted once a year. If you do have them, instead of quarterly reporting, monthly reporting is now required. When to pay taxes for sole proprietors of group 2:

• single tax - by the 20th day of each month;
• Single Social Contribution - by the 20th day of the month following the end of the quarter;
• military duty - monthly, by the 20th day (inclusive).

The annual declaration must be submitted within 60 days after the end of the reporting year, which in 2025 corresponds to March 1. It must reflect the amount of income received, as well as monthly advance payments. The deadlines for the report on the Unified Social Tax are similar.

Delays in filing a declaration

It is better not to forget about reporting, otherwise you will have to pay a fine. It amounts to UAH 340 for each late submission. However, if the situation happens again, you will have to pay UAH 1,020 for the late declaration.

When to start paying the military fee

Only the third group has a certain “deferral”: the military fee is due only at the end of the first quarter of the year. However, the payment of taxes by sole proprietors of group 2 is subject to the condition of including the military fee in the list of payments as early as January 2025, and it must be included by the 20th day.

Paying taxes: important nuances

Sole proprietors must not only pay the specified amount in a timely manner, but also take into account several key points:

• the account details remained unchanged, only the military fee was added;
• the amount of each payment must be credited in full - payment of UAH 799 out of the prescribed UAH 800 will result in a fine of 50% of the military fee;
• it is important to deposit the specified amounts exclusively from your own accounts - a payment from a card of relatives or friends may be regarded as receiving additional income or benefits, and there will be difficulties in identifying the credited funds.

How do I pay taxes as a sole proprietor of group 2? The easiest option is through the taxpayer's electronic account. The section “Settlements with the budget” contains the current details for all payments. And to transfer the required amount, you can either scan the QR code or use the offered cashless payment services. The details must correspond to the region in which the sole proprietor is registered, even if his actual place of residence and business has changed.

When it is possible not to pay taxes for group 2 sole proprietors

There are some exceptions for individual entrepreneurs that may allow them to be exempted from making payments, either for a short period of time or for a long period. This list includes:

• Sick leave or vacation. Group 2 sole proprietors without employees may not pay the single tax for 1 month a year, but they must also stop operating during this period. You must first submit an application to the tax service.
• Mobilization. If an entrepreneur has been called up for military service, he or she may not pay the unified social tax, regardless of whether he or she has employees. The tax exemption remains in effect for the entire period of military service. After demobilization, you must submit an application to the tax office and attach your military ID card.
• Registration in the occupied territories or in combat zones. Sole proprietors are exempt from the Single Tax from the first day of the month in which the status of the settlement was changed. However, this rule applies only if the registration took place before the occupation or the outbreak of hostilities, otherwise tax payments will have to be made in full.

It is useful to know how to register a Group 2 sole proprietorship, what taxes you will have to pay, and what benefits are available. And if you have any difficulties making payments or filing reports, you should take advantage of free legal assistance to get detailed advice and answers to all your questions.