Preparing for 2026: 6 key changes for Ukrainian entrepreneurs that you can't miss

Doing business in Ukraine has always been associated with the need to closely monitor legislative changes. Entrepreneurs are used to tax rules, reporting requirements, and social standards changing, and the ability to adapt quickly is a key success factor.

The year 2026 will be no exception and will bring a number of important innovations affecting the activities of almost every Sole Proprietorship and legal entity. These changes can be broadly divided into three areas: strengthening fiscal control (the return of SSC payments, mandatory terminals), updating financial standards (the new minimum wage and limits), and changes in administration and labor relations.

The purpose of this article is to clearly, structurally, and without unnecessary “water,” explain the six most significant changes that will affect Ukrainian businesses in 2026. Our goal is to help you understand the new rules of the game in advance, assess their impact on your processes and budgets, and confidently enter the new financial year.

1. Return of mandatory SSC “for yourself” for all Sole Proprietorships

A key change directly impacting the budgets of Individual Entrepreneurs (FOPs) is the termination of the exemption from paying the Unified Social Contribution (USC) "for oneself," which was introduced during martial law. The right to withhold USC payments was a temporary anti-crisis measure, and as of January 1, 2025, the obligation to pay USC has been reinstated on general grounds.

This means that FOPs on the simplified taxation system are required to pay USC regardless of whether they generate income or are actively conducting business.

Important clarification for FOPs on the general taxation system: The basic provision of the Law on USC continues to apply to them — if no net income (profit) is earned during a reporting month, the contribution may choose not to be accrued or paid. However, keep in mind that months without USC payments are not credited toward your pension (insurance) record.

In 2026, these rules will remain in effect, but their financial scale will change. According to the State Budget Law for 2026, the minimum mandatory insurance contribution (USC) will increase due to the rise in the minimum wage.

Based on the new minimum wage (UAH 8,647), the minimum insurance contribution as of January 1, 2026, will be: UAH 8,647 × 22% = UAH 1,902.34 per month.

This amount directly depends on the new minimum wage, which we will discuss in more detail in Section 4. For single tax payers (simplified system), this payment is mandatory even in the absence of income. This is particularly crucial for simplified-system FOPs who have temporarily ceased operations but remain registered — USC debt will accrue automatically.

Entrepreneurs must account for these mandatory expenses when planning their budgets for 2026.

2. Payment terminals will become mandatory even for the smallest businesses

From January 1, 2026, the range of entrepreneurs required to provide customers with the ability to make cashless payments will significantly expand. This requirement is part of the state policy to de-shadow the economy and expand cashless payments. According to Resolution No. 894, the requirement applies to the following categories:

• Sole Proprietorships (except Group 1).

• Merchants using vending machines.

• Merchants engaged in mobile/off-site trade.

• Sellers of self-grown products (farmers, gardeners).

According to current regulations and legislative changes, the exception applies to Group 1 Sole Proprietorships. For them, the requirement to use POS terminals does not apply for the entire period of martial law and for three months after its cancellation or termination. During this period, Group 1 Sole Proprietorships may legally operate without payment terminals without additional financial or operational burden.

An alternative to a classic POS terminal may be mobile acquiring (Tap to Phone technology) or software terminals on a smartphone. For a mobile coffee shop or fair trading, a software ECR on a smartphone (Tap to Phone) can be an ideal solution that minimizes initial costs. For a small shop with a steady flow of customers, a classic POS terminal may be more reliable and convenient.

Failure to comply with this requirement entails serious financial penalties:

• Fine from the State Tax Service: from UAH 1,700 to 3,400. For repeated violations within a year — from UAH 8,500 to 17,000.

• Fine from the State Service on Food Safety and Consumer Protection: UAH 8,500.

3. Simplification of reporting for Sole Proprietorships from 2026

Along with new obligations, 2026 will also bring positive changes. This change is an important step toward reducing the administrative burden on small businesses. Instead of 12 reports per year (if payments are made), entrepreneurs will need to submit only 4, freeing up time for core activities.

For Sole Proprietorships, the reporting period for submitting the Tax Calculation of income amounts (previously known as Form 1DF and the SSC report) changes. The key change is that the reporting period shifts from monthly to quarterly.

The new deadline for submitting the report is within 40 calendar days following the last calendar day of the reporting (tax) quarter.

Important clarification: the Tax Calculation must be submitted only if actual payments were made to employees or other individuals. If there were no accruals or payments during the reporting quarter, there is no need to submit a “zero” report.

4. New minimum wage and subsistence level: impact on taxes and limits

The Law on the State Budget – 2026 sets new key social standards that directly affect the tax burden and income limits for businesses.

Key indicators for 2026:

• Minimum wage: UAH 8,647.

• Subsistence minimum for able-bodied persons: UAH 3,328.

These figures form the basis for calculating the single tax and income caps for Sole Proprietorships under the simplified system. Here is how key indicators will change:

• Maximum single tax rate for Group 1: UAH 332.80 (10% of the subsistence minimum).

• Maximum single tax rate for Group 2: UAH 1,729.40 (20% of the minimum wage).

• New annual income limits for single tax payers:

• Group 1: UAH 1,444,049 (167 minimum wages).

• Group 2: UAH 7,211,598 (834 minimum wages).

• Group 3: UAH 10,091,049 (1,167 minimum wages).

Military levy for Sole Proprietorships in 2026

In addition to the single tax, entrepreneurs should consider the updated Military Levy burden. For Group 1, 2, and 4 Sole Proprietorships, it is now fixed at 10% of the minimum wage, which in 2026 equals UAH 864.70 per month. For Group 3 taxpayers, the Military Levy rate is 1% of income. This payment is mandatory and paid separately from the single tax, significantly increasing total monthly business maintenance costs.

5. Part-time work (“0.75 FTE”): specifics during martial law

Establishing part-time work (e.g., 0.75, 0.5 FTE, etc.) is a fully legal practice regulated by Article 56 of the Labor Code of Ukraine. However, during martial law, there are important procedural nuances if the employer initiates such changes.

During martial law, the employer has the right to change essential working conditions (including setting part-time work) without a two-month prior notice. Notification must be provided no later than the introduction of the new conditions.

This rule, established by Law No. 2136, gives businesses greater flexibility in managing staff and payroll. However, it is important to strictly follow the procedure: notify the employee in advance and obtain consent. If the employee does not agree to continue working under the new conditions, the employment contract may be terminated under Clause 6, Article 36 of the Labor Code with mandatory severance pay.

6. Sole Proprietorship accounts: a strict ban on using personal cards for business

We remind you of a fundamental rule of financial hygiene for entrepreneurs: it is prohibited to use personal current accounts opened for private needs to conduct business-related transactions. This requirement is clearly stated in Clause 24 of NBU Instruction No. 162.

Using a personal card not only violates NBU requirements but also creates the risk that tax authorities may treat all incoming funds to this card as business income, leading to additional tax assessments and fines.

The State Tax Service in the Chernivtsi region also provides an important clarification: when terminating business activity, only accounts opened specifically for business purposes must be closed. Accounts opened for personal needs do not have to be closed. Clear separation of personal and business accounts ensures transparency of financial flows and helps avoid unnecessary questions from regulatory authorities.

Key takeaway: 2026 requires not just reaction, but proactive financial planning. We recommend reviewing your business model now, factoring new mandatory payments into pricing, and assessing the need for investments in payment infrastructure. Early preparation is the best way to turn challenges into new growth opportunities.