Fines for high incomes — who among individual entrepreneurs will face penalties in 2025.

Individual entrepreneurs on the simplified taxation system must adhere to the annual income limit. They are restricted by limits, exceeding which may lead to changes in taxation, including switching to the general taxation system.

The Tax Code of Ukraine defines annual limits for individual entrepreneurs for the year 2025. For example, the limit for group 1 is UAH 1,336,000, for group 2 — UAH 6,672,000, and for group 3 — UAH 9,336,000.

What are the annual limits for individual entrepreneurs in 2025

• Group 1 — UAH 1,336,000 (167 minimum salaries);
• Group 2 — UAH 6,672,000 (834 minimum salaries);
• Group 3 — UAH 9,336,000 (1167 minimum salaries).

If the established limits are exceeded, individual entrepreneurs will have to pay an increased single tax rate and may change their taxation system or group.

What are the conditions under the general system

Under the general taxation system, there is no annual income limit, but there are other features. The rate is 23% of the net taxable profit, which includes 18% income tax and 5% military tax. With a turnover of more than UAH 1 million per year, it is necessary to register as a VAT payer.

Lawyer Bohdan Yankiv notes that the general taxation system is suitable for entrepreneurs with large turnovers, but requires more complex tax planning.

What else should Ukrainians know

Starting from August 1, 2025, the amount of fines for violating the rules of using cash register recorders is changing. It's also important to consider the taxation of money transfers between bank cards in a civil marriage.