Pension for self-employed persons in 2026: how to apply, what taxes to pay and what benefits apply

A Sole Proprietorship owner became a pensioner in 2026: how to apply for a pension, receive payments, and what will change for taxes

The granting of a pension does not automatically terminate the state registration of a Sole Proprietorship. The entrepreneur may continue business activity and receive a pension at the same time. The main tax change for most Sole Proprietorship owners after retirement is exemption from paying USC for themselves, while the rules for the single tax, PIT, military levy, VAT, and other obligations still depend on the chosen taxation system and type of activity. (Pension Fund of Ukraine)

Who is entitled to an old-age pension in 2026

In 2026, the right to an old-age pension depends on age and insurance record:

• at age 60 — with at least 33 years of insurance record;

• at age 63 — with 23 to 33 years of insurance record;

• at age 65 — with 15 to 23 years of insurance record. (Pension Fund of Ukraine)

If at age 65 a person has less than 15 years of insurance record, there is no right to an old-age pension. In that case, the person may become eligible for state social assistance under a separate law. (Pension Fund of Ukraine)

Step-by-step action plan for a Sole Proprietorship owner retiring

1. Check your insurance record before submitting the application

Before submitting the application, it is worth checking whether all periods of work and contribution payments are reflected in the register. This can be done through the web portal of electronic services of the PFU, in particular using OK-5/OK-7 certificates and the electronic employment record book data. If part of the record is missing or there are discrepancies, it is better to collect supporting documents before applying for the pension. (Pension Fund of Ukraine)

2. Prepare the documents

Usually required:

• passport or ID card;

• taxpayer registration number;

• documents confirming insurance record — employment record book, data from registers, military ID, education documents, children’s birth certificates, and other documents if they affect the insurance record;

• bank account details if you want to receive the pension through a bank;

• if needed — a salary certificate for any 60 consecutive calendar months before June 30, 2000. (portal.pfu.gov.ua)

3. Submit an application for pension assignment

You can submit the application in three main ways:

• in person at any service center of the Pension Fund of Ukraine;

• online through the web portal of electronic services of the PFU using QES or Diia.Signature;

• through the Diia application or portal. (Pension Fund of Ukraine)

For online submission on the PFU portal, you need to log in, choose the “Application for Pension Assignment” service, fill in the form, attach scanned copies of documents, sign the application with an electronic signature, and send it. The review status can be tracked in your personal account. (Pension Fund of Ukraine)

4. Submit the application on time so as not to lose the payment date

If you apply for a pension within three months after reaching pension age, the old-age pension is assigned from the day following the day you reached pension age. If you apply later, the pension will be assigned from the date of application. (Pension Fund of Ukraine)

If the application is submitted online and the PFU asks for additional documents, the date of application remains the date of the initial electronic application, provided the required documents are submitted within three months from the date of notification. (Pension Fund of Ukraine)

5. Wait for the decision and choose the way to receive the pension

The decision on pension assignment is made no later than 10 days after receipt of the application and all required documents. The Diia service also states a period of up to 10 days. (Law of Ukraine)

There is no need to open a separate special “pension account”. The pension can be received:

• to a current account in an authorized bank;

• through a postal operator, including home delivery, if this method is chosen. (Law of Ukraine)

6. Obtain a pension certificate if needed

After the pension is assigned, a pension certificate can be issued, including an electronic one. The PFU states that it is issued within several days, but no later than 10 days from the date of application. (Pension Fund of Ukraine)

7. After the pension is assigned, notify the PFU of changes affecting the payment

A pensioner is obliged to notify the Pension Fund about circumstances that may affect the payment or its amount. For an entrepreneur, this is especially important in the event of registration or termination of a Sole Proprietorship after the pension is assigned, as well as in the event of employment or dismissal. The PFU must be notified within 10 days. (Pension Fund of Ukraine)

How retirement affects Sole Proprietorship taxes

USC: the main benefit for a retired Sole Proprietorship owner

Part four of Article 4 of the USC Law provides that Sole Proprietorship owners who receive an old-age pension or a pension for years of service, as well as certain other categories of persons, are exempt from paying USC for themselves. Under the current version, this rule applies not only to the simplified system but also to the general taxation system. After that, USC for oneself may be paid only voluntarily. (Law of Ukraine)

Usually, there is no need to notify the tax authority separately about acquiring pensioner status: the STS explains that such information is received by tax authorities through information exchange with the Pension Fund and the Ministry of Social Policy. (kyivobl.tax.gov.ua)

If the Sole Proprietorship is on the simplified system

For a retired Sole Proprietorship owner on the single tax, the pension does not cancel the single tax itself. In 2026, the following basic rules apply:

• Group 1 — single tax rate of up to 10% of the subsistence minimum for an able-bodied person, that is, up to UAH 332.80 per month;

• Group 2 — up to 20% of the minimum wage, that is, up to UAH 1,729.40 per month;

• Group 3 — 5% of income or 3% of income plus VAT. (tax.gov.ua)

The military levy in 2026 for Sole Proprietorship owners is also not canceled due to retirement:

• for single tax payers of groups 1, 2, and 4 — 10% of the minimum wage, that is, UAH 864.70 per month;

• for group 3 — 1% of income. (tax.gov.ua)

Therefore, for a retired single-tax Sole Proprietorship owner, the main difference is this: the single tax and military levy remain, while USC for oneself may be omitted. (Law of Ukraine)

If the Sole Proprietorship is on the general system

For a Sole Proprietorship on the general system, retirement also does not cancel business taxes. The entrepreneur continues to pay PIT at 18% and the military levy at 5% of net taxable income, while USC for oneself may no longer be paid after acquiring pensioner status. (rv.tax.gov.ua)

Is it worth paying USC voluntarily after retirement

After the pension is assigned, a retired Sole Proprietorship owner may stop paying USC for oneself. But then the periods for which the contribution is not paid will not increase the insurance record. If the entrepreneur wants the record to continue accumulating, they may participate in the system voluntarily. (kyivobl.tax.gov.ua)

The PFU also explains that it is possible to conclude a voluntary participation agreement and pay contributions for future periods, and for past periods — make a lump-sum payment for no more than 10 years. The amount for past periods cannot be less than double the minimum insurance contribution for each month. In 2026, the minimum insurance contribution is UAH 1,902.34 per month because the USC rate is 22% and the minimum wage is UAH 8,647. (portal.pfu.gov.ua)

Benefits for retired Sole Proprietorship owners in 2026

The main benefits and reliefs are as follows:

• exemption from paying USC for oneself;

• the ability to continue business activity without closing the Sole Proprietorship;

• the right, as an old-age pensioner, to a land tax benefit within the limits established by Article 281 of the Tax Code. (Law of Ukraine)

What a Sole Proprietorship owner should do immediately after pension assignment

After receiving the decision on pension assignment, it is advisable to go through the following short checklist:

• check whether the pension has been assigned from the correct date;

• choose the payment method — bank or post;

• make sure the tax authority has taken pensioner status into account for USC for oneself;

• do not stop paying other taxes under the rules of your taxation system;

• if after the pension is assigned the employment status changes or the Sole Proprietorship is registered/terminated, notify the PFU about this within 10 days. (Pension Fund of Ukraine)

Practical example

The Pension Fund explained: if a person turns 60 in 2026, at least 33 years of insurance record are required to qualify for an old-age pension. If the record is shorter, the right to the pension is postponed until age 63 or 65 — depending on the actual insurance record acquired. This rule is equally important for Sole Proprietorship owners who paid contributions on their own. (Pension Fund of Ukraine)

Official sources

• Law of Ukraine “On Mandatory State Pension Insurance” No. 1058-IV — Articles 16, 26, 44, 45: retirement conditions, insurance record, date of assignment, obligation to notify the PFU of circumstances affecting payment. (Law of Ukraine)

• Resolution of the PFU Board No. 22-1 “On approval of the Procedure for submission and processing of documents for the assignment (recalculation) of pensions…” — application submission, documents, review periods, notification of changes after pension assignment. (Law of Ukraine)

• Pension Fund of Ukraine, official explanations — insurance record in 2026, list of documents, online application submission, e-services. (Pension Fund of Ukraine)

• Diia portal, “Pension Assignment” service — electronic application submission, free of charge, review period up to 10 days. (Diia)

• CMU Resolution No. 1596 — procedure for paying pensions through current accounts in banks. (Law of Ukraine)

• Law of Ukraine “On the collection and accounting of the single contribution…” No. 2464-VI — Article 4 part 4, Article 8: exemption of retired Sole Proprietorship owners from USC for themselves, USC rate 22%. (Law of Ukraine)

• Tax Code of Ukraine No. 2755-VI — Chapter 1 of Section XIV, Article 167, Article 177, Article 281, subsection 10 of Section XX: rules for the single tax, PIT, military levy, and land tax benefit. (zp.tax.gov.ua)

• Law of Ukraine “On the State Budget of Ukraine for 2026” No. 4695-IX — Article 8: minimum wage UAH 8,647; some taxes and the minimum insurance contribution are calculated on its basis. (Law of Ukraine)

• State Tax Service of Ukraine, official explanations for 2026 — single tax rates, military levy, procedure for information exchange regarding pensioner status. (tax.gov.ua)