Main points
- Individual entrepreneurs begin paying taxes from the moment the simplified system comes into effect, not from the date of registration.
- Individual entrepreneurs of the 3rd group become payers of the single tax from the date of state registration, while groups 1 and 2 operate according to general rules in the month of registration.
When does a sole proprietor start paying taxes / Photo by Pexels
Opening a sole proprietorship requires compliance with a large number of different nuances, including the issue of paying taxes.
When should sole proprietors start paying taxes?
However, after registration, the single tax is not paid, as buh.ua reports.
The obligation arises only from the month when the simplified system officially began to operate for individual entrepreneurs. It is from this date that the obligation to pay the single tax, the Unified State Tax and military duty begins.
You can find out from what date a person became a single tax payer as follows:
- in the taxpayer's personal account – in the “Payer's account details” section, where the registration date is indicated;
- in the “Diya” application – section “Taxes of individual entrepreneurs”, tab “Data on registration of a single tax payer”;
- via OpenDataUA – you just need to enter your TIN (taxpayer registration card registration number (RNOKPP).
Therefore, for individual entrepreneurs of groups 1 and 2, the rules of the “general system” apply in the month of registration.
- There was no income (or expenses are greater than income) – the SSC is not paid.
- There is net income – SSC is paid at a rate of 22%, but not less than the minimum contribution.
At the same time, group 3 automatically becomes a single tax payer from the date of state registration of the individual entrepreneur.
Imagine: you registered a sole proprietorship on July 15 – from that day on, you must calculate and pay the single tax, social security contributions, and military service.
– the material says.
It is noted that one of the most common mistakes made by individual entrepreneurs at the beginning is to pay taxes “in advance” or not to pay at all. Therefore, the main rule is not to pay the single tax until the person is entered into the register of payers (in groups 1-2) or until the funds have been received (in group 3).
Interesting! Over 59 billion in single tax was paid by individual entrepreneurs last year, according to the State Tax Service. This is stated on the Opendatabot website. Individual entrepreneurs of the 3rd group paid 80% of all single tax paid. Most of it was paid in the capital, Lviv and Dnipro regions.
What else should Ukrainians know about taxes?
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If an individual entrepreneur makes a mistake in their calculations and exceeds the permitted limit for their group, the person loses the right to work on the simplified system. The ban becomes effective from the quarter in which the excess occurred.
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In particular, individual entrepreneurs paid by their employer, pensioners and persons with disabilities, individual entrepreneurs from among the military, entrepreneurs from occupied territories, and individual entrepreneurs who were or are in captivity may not pay the single social contribution.