Main points
- Individual entrepreneurs of various groups need to pay the single tax and military levy on time, and some entrepreneurs also need to submit declarations and quarterly reports in May.
- For individual entrepreneurs of the 3rd group, it is necessary to submit a declaration for the first quarter of 2026 by May 11, and pay taxes by May 20.
What individual entrepreneurs must do in May to avoid a fine / Collage of Channel 24, photo by Pexels
For Ukrainian entrepreneurs, May will be one of the most important months in terms of taxes and reporting. Individual entrepreneurs of various groups need to pay the single tax, military duty on time, and some entrepreneurs also need to submit declarations and quarterly reports.
What are the tax payment deadlines for sole proprietors in May?
Entrepreneurs have their own deadlines, said tax consultant Mykhailo Smokovich.
Individual entrepreneurs of the 1st group must, by May 20:
- pay a single tax for May – UAH 332.80;
- pay military duty – 864.70 UAH.
For individual entrepreneurs of the 2nd group, until May 20, the following is provided:
- payment of a single tax – UAH 1,729.40;
- payment of military duty – 864.70 UAH.
Individual entrepreneurs of the 3rd group in May need:
- submit a declaration for the first quarter of 2026 by May 11;
- pay 5% of the single tax by May 20;
- Pay 1% of the military fee by May 20.
Individual entrepreneurs who have employees must submit a tax calculation, Appendix 1 to the Unified State Register of Taxes and Appendix 4DF for January, February, and March 2026 by May 11.
Also, entrepreneurs who made payments to individuals must submit a tax calculation with Appendix 4DF for the first quarter of the year.
What does this mean?
For entrepreneurs, May has actually become a month of increased tax burden.
For sole proprietors:
- it is important not to miss deadlines;
- it is necessary to properly prepare reports;
- the risk of fines for errors or delays increases.
For the state:
- this is one of the key periods for tax revenues to the budget;
- control over reporting is becoming stricter;
- Military levies remain an important source of defense funding.
Please note! For Ukrainian individual entrepreneurs, May has become one of the most important months of the tax calendar. Entrepreneurs need not only to pay taxes and military duty on time, but also to submit reports correctly. Against the backdrop of increased control and military burden on the budget, attention to tax deadlines becomes critically important for business.
Who can avoid paying taxes?
Entrepreneurs who were already registered as individual entrepreneurs or engaged in independent professional activities before the time of conscription or conclusion of a contract can take advantage of some benefits, the State Tax Service reported.
The benefit applies to entrepreneurs who were called up during general mobilization or who signed a contract for military service. For the entire period of military service (but not earlier than February 24, 2022), such entrepreneurs may not pay:
- personal income tax;
- single tax;
- military service;
- the only social contribution for yourself.
They are also exempt from the obligation to file reports on these taxes. The exemption begins on the first day of the month in which mobilization or signing of the contract took place and lasts until the last day of the month of demobilization or discharge from service.
New taxes in Ukraine: why can the activities of individual entrepreneurs be complicated?
At the end of March 2026, the Ministry of Finance published a new version of the tax bill. This document is one of the requirements for the continuation of financial assistance to Ukraine within the framework of the $8 billion package. 24 Channel learned what exactly could change for individual entrepreneurs and consumers.
The draft law mostly complicates the activities of individual entrepreneurs, because in addition to the threshold amount for introducing VAT, there is another list of requirements that the State Tax Service can interpret at its discretion. For example, what is an individual entrepreneur who has an employment relationship, how is this correlated, etc.
Yuri Shchedrin,
analyst at the NGO “Center for Urban Development”
In Ukraine, there is actually a problem with large chains using schemes such as splitting businesses into individual entrepreneurs. However, this problem should be dealt with differently, because we have financial monitoring.
The tax office can check this or that business, and accordingly, see the real picture. However, they want to do this not specifically and separately with those businesses that violate the rules, but a priori with all businesses. Therefore, those entrepreneurs who work honestly and pay all taxes will be forced to justify themselves.
Accordingly, we will not work as much as possible with black and gray business, but will try to fight white,
– says the analyst.
At the same time, there are currently many areas in Ukraine that require attention, including smuggling at customs, the alcohol, cigarette, and fuel markets. This is where additional funds can be accumulated more quickly without risk to economic activity.
According to Shchedrin, the harm from this legislation is much greater than the conditional benefit. After all, the tax revenues that should come from it will not cover the risks and negative consequences that await business, which are increased inflation and a decrease in entrepreneurial activity.
What else do individual entrepreneurs in Ukraine need to know?
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Different groups of sole proprietorships have specific restrictions – regarding employees, annual income, type of clients, etc. They also differ in the single tax rate on the simplified system; and Group III is considered the most universal.
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For activities without registration as an individual entrepreneur, a fine of 340 hryvnia is provided, and for economic activities without registration – from 17 to 34 thousand hryvnia with confiscation. In case of repeated violation, the fine is from 34 to 85 thousand hryvnia with confiscation, and improper record-keeping can lead to a fine of 51 to 136 hryvnia.