Individual entrepreneurs with disabilities may not pay the Unified Social Contribution
The Unified Social Contribution (USC) is a mandatory payment made by employers and entrepreneurs to ensure social protection of citizens. It is a social security tax paid by employers for their employees.
Individual entrepreneurs on the simplified taxation system determine the amount of the unified social contribution they pay, but the amount of the unified social contribution must not be less than the minimum insurance contribution.
- minimum insurance contribution = minimum salary * 22%.
The minimum salary as of 1 January 2025 is UAH 8 000. Accordingly, the minimum amount of the unified social contribution in 2025 is UAH 1 760 per month (UAH 8 000 * 22%) or UAH 5 280 per quarter.
According to the current legislation, individual entrepreneurs may be exempt from paying the USC for themselves if they:
- are people with disabilities (have an established disability group);
- receive a disability pension or social assistance for disability.
If an individual entrepreneur receives a disability pension, the exemption from the USC is automatic, as the tax office receives data from the Pension Fund.
What documents are required?
The document confirming the disability is an extract from the decision of the expert team assessing the person's daily functioning. You will also need a certificate of receipt of social assistance for disability.
The document should be submitted to the tax office at the place of registration of the sole proprietorship.
Can entrepreneur continue to pay the unified social contribution?
Yes, an individual entrepreneur with a disability, even if exempt from paying the unified social contribution, may still voluntarily continue to pay it, as the insurance period and the preservation of social guarantees, such as sick pay, depend on the payment of the unified social contribution.
The USC exemption may be terminated if:
- The individual entrepreneur loses the status of a person with a disability, for example, by failing to pass a reassessment, or
- The individual entrepreneur stops receiving a pension/social assistance for disability.
In such circumstances, the obligation to pay the USC will resume from the next month.
This information material has been produced as part of a project implemented by the Danish Refugee Council (DRC) with financial support from the German Federal Foreign Office. The views and opinions expressed are those of the author(s) alone and do not necessarily reflect the views of the German Federal Foreign Office or the DRC. Neither the German Federal Foreign Office nor the DRC can be held responsible for the content of this material.
