Single tax (ST) in 2025: who pays, rates, and reporting rules

The single tax (ST) in 2025 remains the most popular form of taxation for small businesses in Ukraine. The simplified system allows entrepreneurs to reduce their tax burden, avoid complex accounting, and focus on developing their business rather than on administrative procedures.

In 2025, updated rates and limits apply to all groups of single tax payers.

In this article, we will tell you what rates and limits apply in 2025, who can be a single tax payer, how to calculate the amount of ST, when to pay it, and how to file a declaration online through Vchasno.Zvit.

What is a single tax

A single tax (ST) is a special taxation mechanism that establishes a simplified system of tax collection and accounting. Its basis is enshrined in Article 291 of the Tax Code of Ukraine (hereinafter referred to as the TCU).

Instead of several taxes, entrepreneurs under the simplified system pay only a single tax. This simplifies tax accounting and reduces the administrative burden.

The simplified taxation system is best suited for:

• individual entrepreneurs (IE) who run small businesses;
• small business legal entities with limited income.

According to Article 291 of the TCU, it is prohibited to apply the single tax in the following cases:

• activities related to the organization and conduct of gambling;
• foreign currency exchange;
• production, export, import, and sale of excisable goods (except for retail sale of fuel);
• extraction and sale of minerals (except for commonly found minerals);
• activities in the field of financial intermediation (except for insurance agents);
• management of enterprises.

Single tax payers are required to make payments exclusively in cash or non-cash form. Payments in kind are prohibited.

Single tax payer groups in 2025

The simplified taxation system provides for four groups of single tax payers. Each group has its own conditions, rates, and income limits.

Table 1. Single tax payer groups in 2025

Current single tax rates in 2025: table for all groups

The single tax rate depends on the selected group and is set in accordance with Article 293 of the Tax Code of Ukraine.

Table 2. Single tax rates in 2025

Important. According to paragraph 293.4 of Article 293 of the Tax Code of Ukraine, a higher rate of 15% may be applied to single tax payers. It applies:

• to the amount exceeding the income specified for the relevant group;
• to income from activities not specified in the register of single tax payers;
• to income received when using another method of calculation (non-monetary);
• to income from activities that do not give the right to apply the simplified system.

How to calculate the amount of the single tax: examples for sole proprietors in groups 1–3

Let’s look at typical examples of calculating the amount of the single tax for different groups of sole proprietors.

📌 Example 1. Sole proprietor in group 1

The sole proprietor provides consumer services to the population (hairdresser). The local council has set a rate of 10% of the minimum subsistence level.

📌 Example 2. Individual entrepreneur in group 2

The individual entrepreneur is engaged in retail trade in food products. The local council has set a rate of 15% of the minimum wage.

📌 Example 3. Individual entrepreneur in group 3 (without VAT)

The individual entrepreneur provides IT services. Income for the first quarter of 2025 amounted to UAH 450,000. The individual entrepreneur is not a VAT payer.

📌 Example 4. Individual entrepreneur in group 3 (with VAT)

The individual entrepreneur is engaged in wholesale trade. Income for the first quarter of 2025 amounted to UAH 800,000. The individual entrepreneur is a VAT payer.

When and how to pay the single tax

Article 295 of the Tax Code of Ukraine defines the following terms for payment of the single tax for different groups of taxpayers:

• Groups 1 and 2 — pay the single tax in advance no later than the 20th day (inclusive) of the current month. ​ Payers have the right to pay the single tax in advance for the entire tax period (quarter, year), but no later than the end of the current reporting year.​
• Group 3 — quarterly within 10 calendar days after the deadline for submitting the tax return for the reporting quarter.​
• Group 4 — quarterly within 30 calendar days after the end of the reporting quarter.

The current details for paying taxes in 2025 can be found in the Vchasno.Zvit service account. The entrepreneur only needs to specify the registration address, and the system will automatically determine the correct details.

Reporting by single tax payers

The procedure for keeping records and preparing reports by single tax payers is defined in Article 296 of the Tax Code of Ukraine. Reporting is individual for each group.

🏷️ Groups 1-2

Single tax payers in groups 1 and 2 submit a single tax payer declaration. It reflects:

• the amount of income received;
• monthly advance payments;
• information about the amounts of social security contributions accrued and paid.

🏷️ Group 3

Single tax payers in group 3 submit a single tax payer tax return to the controlling authority on a quarterly basis. The return separately reflects:

• the amount of income taxed at the applicable single tax rate;
• the amount of income taxed at a rate of 15% (if the limit is exceeded).

🏷️ Group 4

Single tax payers in Group 4 submit their returns once a year, no later than February 20 of the current year.

The deadlines for submitting returns for all groups are shown in the table.

Important: If the last day of the deadline for submitting the declaration falls on a weekend or public holiday, the last day of the deadline is considered to be the business day following the weekend or public holiday.

Additional payments for sole proprietors

In addition to the single tax, sole proprietors under the simplified taxation system are required to pay:

• Unified social contribution (USC);
• military tax (MT).

Single tax payers in the third group who have chosen a rate of 3% are required to register as VAT payers and pay value added tax at a rate of 20%

Penalty for late payment or failure to submit a report

Tax legislation provides for the following penalties for late payment of the Single Tax:

• a penalty of 5% of the unpaid amount — if the delay is up to 30 days (inclusive);
• a penalty of 10% of the unpaid amount — if the delay exceeds 30 days.

If an individual entrepreneur does not pay the Single Tax within 90 calendar days from the last day of the deadline, an additional penalty is charged (clause 129.1 of Article 129 of the Tax Code of Ukraine). Its amount is 100% of the annual discount rate of the National Bank of Ukraine in effect on the relevant day of delay.

Failure to submit or late submission of tax reports is punishable under Article 120 of the Tax Code of Ukraine:

• for each violation — a fine of UAH 340;
• if the individual entrepreneur has already been fined for such a violation during the year — UAH 1,020 for each violation.

How the Vchasno.Zvit service helps entrepreneurs file their tax returns online

Vchasno.Zvit is a comprehensive platform for automating tax accounting and reporting, created specifically for small businesses in Ukraine. It helps entrepreneurs who pay a single tax to easily fulfill all their tax obligations online.

It offers the following advantages to entrepreneurs who pay a single tax:

1. It generates and submits single tax returns in just a few clicks. Entrepreneurs do not need to understand complex reporting forms.
2. It automatically calculates the amount of tax, social security contributions, and military tax. All you need to do is enter basic data on income for the reporting period.
3. Determines the correct payment details. This eliminates errors in payment orders and ensures that funds are credited to the budget correctly;
4. Reminds you of deadlines for submitting reports and paying taxes. The service tracks all important deadlines and sends reminders to your personal account on the platform;
5. Allows you to sign declarations with a qualified electronic signature directly in the platform interface. Vchasno.Zvit is integrated with the Vchasno.KEP service;
6. Stores signed documents in a secure cloud storage.

In 2025, the single tax for sole proprietors remains a simple and effective form of taxation. With the Vchasno.Zvit service, tax accounting becomes simple and understandable. The service helps you file your returns online, without errors or delays, automates all routine processes, reminds you of deadlines, checks the accuracy of data, and ensures timely submission. This allows entrepreneurs to work without stress, without queues at the tax office and without errors in reporting, and to focus on developing their business rather than on paperwork.