Tax Updates

 On 01 October 2025, Law of Ukraine No. 4536-IX “On Amendments to the Tax Code of Ukraine in Connection with the Adoption of the Law of Ukraine ”On Integrated Prevention and Control of Industrial Pollution” comes into effect, which, in particular, was adopted to ensure proper administration by tax authorities of environmental tax and rent payments for the use of subsoil for the extraction of minerals and rent payments for the special use of water.

New minimum wage requirements

Starting from 01 October 2025, business entities that have obtained licenses for the retail trade of alcoholic beverages, cider and perry (without the addition of alcohol), tobacco products, liquids used in electronic cigarettes, and fuel, for the purpose of carrying out the respective activity on the basis of such licenses, must comply with new requirements.

The amount of the average monthly salary accrued by a business entity / the total monthly taxable income of a business entity registered as an individual entrepreneur without hired employees shall not be less than:

  • 1.5 minimum wages, provided that the following conditions are met simultaneously for all retail trade locations:
  • their location is outside the settlements that are administrative centers of regions, as well as the cities of Kyiv and Sevastopol, at a distance of at least 50 kilometers;
  • the retail trade area is under 500 square meters.
  • 2 minimum wages – for all other business entities whose retail trade locations do not meet the above conditions.

Note that in accordance with Article 8 of Law No. 4059, starting from 01 January 2025, the following minimum wage is set: UAH 8,000 per month and UAH 48 per hour.

Failure to comply with these requirements will result in the suspension of the license.

The calculation of the average monthly salary or the total monthly taxable income of a business entity shall be carried out for the period starting from the date of entry into force of Law No. 4536-IX, i.e. from 01 October 2025.

The license shall be suspended if, based on the results of an inspection by the regulatory authority, a fact is established and recorded in the inspection report that the above conditions have not been met for three full calendar months in a row during the term of the license.

Unified social contribution exemption for individual entrepreneurs

From 01 October 2025, individual entrepreneurs and other self-employed persons who simultaneously work as employees for an employer are exempt from paying the unified social contribution (USC) for themselves if the employer has paid the contribution in an amount not less than the minimum insurance contribution. Having a primary place of employment is no longer required for this exemption, so it also applies to secondary employment.

If the employer has paid less than the minimum insurance contribution, the individual entrepreneurs or self-employed person must independently pay the full amount of the minimum USC, not just the difference. The calculation base cannot exceed the maximum amount established by law, and the contribution amount must not be less than the minimum insurance contribution.

For individual entrepreneurs on the simplified tax system, the additional payment is mandatory regardless of income. For other self-employed persons, payment is required if there is net income. If there is no income, the contribution may be paid voluntarily.

Note that since the minimum wage as of 1 January 2025 is UAH 8,000 per month, the minimum amount of the USC is UAH 1,760 per month.

From 01 January 2026, the procedure for submitting the tax calculation of income, withheld tax, and accrued USC for employees will change. Reports will be submitted quarterly but broken down by month of the quarter. The submission deadline is within 40 calendar days after the end of the quarter.

Moreover, individual entrepreneurs who are on parental leave until the child reaches three years of age and receive state child benefits, or who are on maternity leave, are also exempt from paying the USC for themselves.

We will closely monitor further developments in this area and will report on this in future Legal News.