Mass closure of sole proprietorships in Ukraine: results after the adoption of the law on tax increases
Since the signing by the President of Ukraine of the law on tax increases, 22,521 individual entrepreneurs have ceased their activities. This process began with impressive dynamics – in the first days after the adoption of the law, more than 1,000 entrepreneurs ceased their activities every day. About it on December 18 informs Opendatabot platform.
The day of the signing of the law, November 29, was especially noticeable, when 2,332 sole proprietorships immediately closed their businesses. For comparison, on average, about 700 entrepreneurs cease their activities every day. Thus, the change in tax policy caused a sharp jump in the number of foreclosures, which caused a significant uproar among the business community.
To find out to what extent the new tax policy influenced the decision of entrepreneurs to close their businesses, the Opendatabot platform launched a large-scale survey among Ukrainian entrepreneurs. The main goal of this study is to understand how innovations were reflected in the plans of small and medium-sized businesses.
You can take part in the survey through Telegram or Viber messengers, and the results will be published on December 24 on the official Opendatabot resources. The organizers hope that the results will help assess the real impact of the tax changes and outline the problems faced by entrepreneurs.
In total, since the beginning of 2024, 254,288 FOPs have ceased their activities. The highest peak of closures occurred in March, when 28,690 entrepreneurs closed. Other bursts of activity were observed at the end of reporting periods, which is explained by the desire of entrepreneurs to avoid additional tax obligations and simplify accounting.
The tax increase law had a significant impact on the number of closings in the fall of 2024. Many entrepreneurs see the new taxes as unfair and excessive, especially for small businesses with limited resources.
On the other hand, the authorities emphasize that even after the changes, tax rates in Ukraine remain among the lowest compared to EU countries. However, this argument does not convince many entrepreneurs who have faced the need to close their businesses due to rising costs.
Consequently, the mass closure of FOPs became one of the main economic consequences of the adoption of the tax law. This is an alarming signal for the economy of Ukraine, because small and medium-sized businesses are the basis of stability, employment and development.
