Photo: Press service of the President of Ukraine
President of Ukraine Volodymyr Zelenskyy has signed Law No. 9319, which postpones the introduction of new tax rules for individual entrepreneurs until 1 January 2025, instead of the previously planned date of 1 October 2024. This was reported by Danylo Hetmantsev, Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, in his Telegram on Wednesday, 25 December.
Key changes to the law
According to the signed law, the new tax rules for individual entrepreneurs, including the tax increase, will only come into force in early 2025, giving entrepreneurs more time to adapt to the new conditions.
The document also contains changes to the functioning of the Diia.City legal regime and its adaptation to martial law. One of the most important amendments is the cancellation of the rule on non-application of the 5% personal income tax rate and the minimum unified social contribution to the income of specialists for Diia.City residents with the status of start-ups if the number of such persons is less than nine.
Problems of small business
According to Opendatabot, 27% of the surveyed sole proprietors plan to cease their activities in the near future. Most of them made this decision due to a sharp increase in the tax burden.
After the introduction of the law on military tax for small and medium-sized businesses, the number of new sole proprietors per closed business doubled.
Thus, the introduced changes have created a difficult situation for entrepreneurs, but the postponement of the new rules gives them a chance to adapt to the changes more smoothly.
