The Parliament plans to simplify taxation for individual entrepreneurs.
The Parliament plans to simplify taxation for individual entrepreneurs. The respective changes appear in Draft Law No. 8226 (registered at the Verkhovna Rada of Ukraine on 24.11.2022), enabling Individual Entrepreneurs (FOP) of the 3rd group to pay taxes and submit reports automatically.
The “Smart-FOP” system can automate the related processes, eliminating the need to involve an accountant or a businessperson.
The Ministry of Digital Transformation of Ukraine has clarified that after the registration, a businessperson will have to:
- Apply in “Diia” to choose (transfer to) a special taxation regime in which a bank acts as a tax agent;
- Open a specialized account with the bank.
After the mentioned above, the bank will automatically withdraw 5% of the unified tax and minimal Unified Social Contribution, as will provide the tax office with information on the sources of the funds.
In other words, an individual entrepreneur will be able not to waste time for:
- manual submission of declarations;
- paying taxes personally;
- monitoring tax payment deadlines.
Who will benefit from this?
Individuals who work not hiring employees, or those with an unlimited amount of those being in labour relations with such a businessperson, as well as legal entities – businesses of any organizational and legal form, whose annual income does not exceed the amount of 1167 minimal wages, as legally established as of January 01 of a fiscal (reported) year. Mostly, those are businesses in the IT sphere and alike.