Features of the activities of individual entrepreneurs on the general system in 2026

28.01.2026 12:00

Sole Proprietors (FOP) on the General Taxation System in 2026: Conditions, Taxes, Reporting and Accounting

A sole proprietor on the general taxation system (FOP on the general system) has no limits on annual income, number of employees, and types of activities (as a general rule — without special "single tax" restrictions). They pay taxes on net taxable income (profit): that is income minus documented expenses. This is the key difference from the simplified system: if there is no profit for the period, then PIT (Personal Income Tax) and military levy on business income do not arise.

Against the backdrop of increasing tax burdens in 2025–2026 for FOPs on the general system, the most important changes are:

the military levy is applied at a rate of 5%;

in 2025–2026, mandatory payment of USC (ESV) is in effect (wartime "voluntary" status for most FOPs is blocked);

from 01.01.2026, the quarterly format for submitting combined reporting on PIT/Military Levy/USC (if payments to individuals exist) has been returned for FOPs, instead of monthly.

Conditions for FOPs on the general system in 2026

Criterion	Conditions of stay
Annual income limit	Unlimited.
Number of employees	Unlimited.
Types of activities	Unlimited (subject to general legislative requirements regarding licenses/permits for certain types of activities).
Foreign economic activity (FEA) restrictions	FEA is permitted.
Counterparties	Provision of services and sale of goods to any business entities regardless of their taxation system.
Reporting (tax) period	Calendar year.
Accounting	1) Income and expense accounting is kept according to the Standard Form (Order of the Ministry of Finance No. 261 of 13.05.2021). 2) Inventory accounting is kept in cases defined by legislation (specifically when carrying out settlement operations and selling goods — in accordance with the requirements of the Law on RRO and bylaws).
RRO/PRRO (Registrars of Settlement Operations)	Obliged to use RRO/PRRO when carrying out settlement operations (cash/card/other payment instruments) regardless of the type of activity and income volume.
Tax rates	PIT — 18%; Military Levy — 5%; base: net profit (income – confirmed expenses) received from FOP activities.
Deadlines for PIT and Military Levy payment	Advance PIT payments — quarterly: by April 20, by July 20, by October 20. Final calculation of PIT and Military Levy for the year — within 10 calendar days after the deadline for submitting the annual declaration.
USC (ESV) for FOP	22% of the net income (profit) subject to PIT. If there is no net income — as a general rule, the FOP on the general system may not pay USC for the relevant months (but these months will not provide insurance tenure). Separate exemption categories apply (pensioners, persons with disabilities, etc.) according to the Law on USC.
Deadlines for USC payment	Paid quarterly: the deadline is the 19th day of the month following the quarter for which the USC is paid (effectively "by the 20th", but if the 20th is a weekend/holiday, the 19th is often the guideline as the last working day).
Annual declaration of FOP on general system	The tax declaration on property status and income is submitted by May 1 of the year following the reporting year. The USC annex is submitted once a year as part of the annual declaration.
If the FOP has employees	Salary is paid according to labor legislation rules (at least twice a month, etc.). PIT/Military Levy/USC from salary and equivalent payments are paid during/before the income payment (as a tax agent).
Reporting as a tax agent (if payments to individuals exist)	Tax calculation (combined reporting on PIT/Military Levy/USC with annexes) for FOPs in 2026 — quarterly: submitted within 40 calendar days after the end of the quarter (with a breakdown of indicators by months of the quarter). It must be submitted only if there were actual payments to individuals (employees or other individuals/counterparties-individuals for whom the FOP acts as a tax agent).
If the FOP is mobilized	Under conditions defined by legislation (specifically if the FOP was registered before conscription/contract and has no employees) — exempted from accrual/payment and submission of reporting for the period of service. If there are employees — authorization of another person to pay salaries and perform tax agent functions is possible.

Taxes of FOP on the general system in 2026: what exactly is paid

1. PIT (18%)
PIT is paid on net taxable income (profit), which is defined as the difference between income from business activities and documented expenses related to this activity.

2. Military Levy (5%)
The military levy in 2026 is applied at a rate of 5% to incomes subject to declaration, and for a FOP on the general system, it is calculated from the same base as PIT — from net profit.

3. USC (ESV) (22%)
USC for a FOP on the general system is 22%. Practically important:

in 2025–2026, for most FOPs there is no "wartime" option to completely skip paying USC "for oneself" solely due to martial law;

if in a separate month/period there is no net income, USC for this period may not be paid, but then there is no insurance tenure for the corresponding months.

Minimum USC in 2026: 22% of the minimum salary 8647 UAH = 1902.34 UAH/month (as a guideline for the minimum insurance contribution when USC is paid).
Maximum USC base in 2026: 20 minimum salaries = 172 940 UAH/month.

Tax payment deadlines in 2026

PIT: quarterly advances + annual recalculation
The FOP independently calculates advance PIT payments and pays them:

by April 20;

by July 20;

by October 20.

The final calculation of PIT (and accordingly Military Levy) based on the year's results is carried out after submitting the annual declaration: payment must be made within 10 calendar days after the deadline for submitting the declaration.

Military Levy: together with the annual tax obligation
For a FOP on the general system, the Military Levy effectively "goes together" with the year-end result (via the declaration): calculation — in the declaration, payment — within the deadline for paying obligations under the declaration.

USC (ESV): quarterly
USC "for oneself" is paid quarterly. The deadline is the 19th day of the month following the quarter for which the contribution is paid.

Reporting of FOP on the general system in 2026

A FOP on the general system submits the following main reports:

1. Annual declaration on property status and income

The form is submitted for the reporting year.

Submission deadline: by May 1 of the year following the reporting year.

The annual annex regarding USC is also submitted as part of the declaration (The USC Annex is submitted once a year together with the declaration).

2. Combined reporting as a tax agent (if there are employees or other payments to individuals)
If the FOP pays income to individuals (salary, rewards, other payments from which PIT, Military Levy, and USC are withheld/accrued), they submit the Tax Calculation (combined reporting with annexes).

Important for 2026:

for FOPs and self-employed persons, reporting is quarterly;

submission deadline — within 40 calendar days after the end of the quarter;

submitted only if there were actual payments in the reporting period;

indicators in such reporting are submitted with a breakdown by months of the quarter.

3. Other reports (if an object exists)
For example, excise reporting — only if the FOP carries out operations falling under excise duty and has corresponding obligations (the specific type of activity is important here).

Accounting features of FOP on the general system in 2026

The FOP keeps records of income and expenses according to the Standard Form approved by Order of the Ministry of Finance No. 261.

The date of income receipt is considered the day of actual receipt of funds (or receipt of property/services in case of non-monetary settlements), depending on the actual business operation.

The Military Levy is applied at a rate of 5% and is calculated from net profit together with PIT.

PIT is paid during the year as advances (quarterly), and finally — based on the declaration results.

If the FOP is a tax agent (payments to individuals), in 2026 the submission of combined reporting for the FOP is quarterly (if payments exist).

Expenses are recognized only if they are documented and related to business activities.

Expenses of a "personal" nature and expenses not related to business activities (for example, car maintenance for private needs) are not included in expenses.

Taxes and fees paid as personal obligations of the FOP (PIT, Military Levy "for oneself") are not business expenses; however, expenses may include taxes/fees directly related to activities and property within the Tax Code rules (expense issues should always be "checked" through primary documents and connection to activity).

USC "for oneself" is accounted for as contribution payment: if USC is paid — this is confirmed by the fact of payment.

The issue of inventory accounting is monitored separately: when selling goods in settlement operations, it is necessary to comply with requirements regarding confirmation of the origin of goods and their reflection in inventory accounting.

Book (form) of income and expense accounting for FOP on the general system

The procedure for keeping income and expense records is defined by Order of the Ministry of Finance No. 261. Practical rules:

the form can be kept in paper or electronic form;

registration with the tax office is not required;

lacing/printing/mandatory QES specifically for the fact of the form's "existence" is not a universal requirement — the key is that accounting exists and is confirmed by primary documents.

Legislation does not establish a separate full-fledged mechanism for maintaining this form "inside" the E-cabinet as a substitute for accounting in all scenarios: responsibility for the existence of accounting and primary documents lies with the entrepreneur.

When a FOP switches to the general system in 2026

A FOP on the simplified system must switch to the general system if grounds arise, in particular:

carrying out types of activities prohibited for the simplified system (list — in the Tax Code);

application of settlements/work models not allowed for the relevant Single Tax group;

exceeding the income limit for their Single Tax group.

The transition to the general system is not only a "change of rate", but also a change in accounting logic: on the general system, expenses (their confirmation) and correct calculation of net income are critically important.

Responsibility and fines in 2026

1. For non-submission or late submission of tax reporting

financial liability for non-submission/late submission of a declaration (as tax reporting) — 340 UAH for each violation, and for a repeat violation within a year — 1020 UAH;

administrative liability may apply separately for non-submission/late submission of declarations or improper keeping of income and expense records — a warning or a fine within the limits established by the Code of Administrative Offenses.

2. For non-payment/late payment of agreed tax obligations
Depending on the type of violation and delay period, financial sanctions and penalties may apply. Therefore, it is practically important to separate two risks:

"did not submit/submitted late" (fine for reporting);

"submitted, but did not pay on time" (fines/penalties for late payment).

3. For violation of RRO/PRRO rules and inventory accounting
In settlement operations, control over RRO/PRRO and inventory accounting is one of the most "fine-dangerous" areas. Therefore:

if you sell goods and accept payment as a settlement operation — ensure RRO/PRRO;

ensure primary documents for goods and their reflection in inventory accounting in cases where required by law.

Short practical checklist for FOP on the general system in 2026

Keep records of income and expenses using form No. 261 and collect primary documents for expenses.

Remember that 18% PIT and 5% Military Levy are from net profit, not "cash turnover".

PIT during the year: advances by 20.04, 20.07, 20.10; after the declaration — final additional payment (together with Military Levy) within 10 days.

USC in 2026 — mandatory in general mode (wartime "voluntary" status does not work), but in the absence of net income, months without payment (without tenure) are possible.

If there are employees or other payments to individuals — in 2026, submit combined reporting quarterly (and only when there were payments).

If you accept payment as a settlement operation — use RRO/PRRO and comply with requirements for inventory accounting.

Sources for checking the relevance of norms

Minimum salary for 2026 (8647 UAH) — Law on State Budget 2026. (Zakon Rada)

The 5% military levy rate applies to income from 01.01.2025 (STS clarification). (od.tax.gov.ua)

Advance PIT payments for FOP on general system: by 20.04, 20.07, 20.10; 4th quarter is not paid in advance (explanation with reference to sub. 177.5.1 of the Tax Code). (7eminar)

Submission of declaration on property status and income by self-employed persons — by May 1 (STS clarification). (cv.tax.gov.ua)

From 01.01.2026, FOPs submit combined reporting (PIT/Military Levy/USC) quarterly, 40 days after the quarter, only if payments exist (official STS news). (sumy.tax.gov.ua)

Deadline for paying USC "for oneself" — 19th of the month after the quarter (STS clarification). (zt.tax.gov.ua)

In 2025, the right "not to pay USC during martial law" was suspended; in 2025–2026, USC payment is mandatory for most FOPs (STS clarification). (tr.tax.gov.ua)

Inventory accounting: the obligation arises from p. 12 Art. 3 of the Law on RRO (example of STS clarification/news). (poltava.tax.gov.ua)

Liability for late submission of a declaration: administrative liability (STS position). (tax.gov.ua)

Fines for non-submission/late submission of tax reporting 340/1020 UAH (STS position). (lv.tax.gov.ua)

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Марія

17-07-2024 в 12:13:43

*****

Тетяна

08-02-2026 в 12:44:25

чітко,зрозуміло !!!

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