From the beginning of 2025, new taxation rules for individual entrepreneurs (PPOs) are planned to be implemented in Ukraine. These changes are aimed at increasing the transparency of the tax system, making it more efficient and adapted to European standards. The innovations will affect both tax rates and reporting and control processes.
One of the key changes will be the introduction of differentiated tax rates for different categories of FOPs. It is expected that the system will take into account the income level of entrepreneurs, the type of activity and other factors. This should ensure fairer taxation conditions, where higher income will be subject to higher taxes, and small entrepreneurs will have the opportunity to work on more favorable terms.
From now on, all FOPs will be required to submit reports exclusively in electronic form. This will contribute to the automation of data processing processes, reduce the number of errors and the possibility of abuse. Electronic reporting will also simplify the interaction of entrepreneurs with tax authorities, reducing the time spent on tax administration.
Mandatory use of cash registers will be introduced for certain categories of FOPs. This applies to entrepreneurs who make cash payments, especially in retail trade and the service sector. The introduction of cash registers will ensure control over the circulation of cash and prevent tax evasion. The government promises to provide partial compensation for the purchase of such devices for small entrepreneurs.
From 2025, tax authorities will receive expanded powers to audit FOPs. This will include both scheduled and unscheduled inspections to monitor tax compliance. At the same time, fines for violations such as failure to report, use of illegal labor or tax evasion will be increased.
The new rules are aimed at creating a more transparent environment for entrepreneurs, eliminating opportunities for tax abuse and creating a level playing field for business development. The government expects that this will contribute to the growth of revenues to the budget and stimulate the economic development of the country.
