[TechUkraine news] FOPs paid $1.23B – the highest tax amount in the last 5 years

Ukrainian individual entrepreneurs (FOP) paid UAH 34.8B ($1.23B) – the highest tax amount in the last 5 years. For comparison: in 2020 FOPs paid UAH 27.6B, in 2019 – UAH 24.95B, in 2018 – UAH 19.875B.
  • The high amount is explained both by the increase in FOP income and the growth in the number of new entrepreneurs, and that existing FOPs are less likely to close.
  • FOP tax regime is popular among tech specials and IT companies.
  • Over the past 6 years, fiscal revenues from the IT industry have more than tripled. This is facilitated by the stable growth of the industry, maintaining the possibility of contractual interaction of legal entities with specialists who are individual entrepreneurs of the 3rd group.
  • By the end of 2021, the number of FOPs had reached almost 2 million businesses.
  • The single tax is the main tax for FOPs, which was introduced to simplify doing business and reduce the tax burden.
  • The most popular single flat tax rate among FOPs is 5% of your income if your income does not exceed UAH 7M ( $250K)