Legislative changes for individual entrepreneurs: USC, reporting, tax obligations

On September 3, Law No. 4536-IX came into force, which introduces some changes for individual entrepreneurs regarding the payment of social security contributions and reporting.

The new Law of Ukraine dated 16.07.2025 No. 4536-IX adjusts the timelines for obtaining licenses for fuel and excisable goods — alcohol and tobacco, the payment of the Unified Social Contribution (USC) for oneself for Sole Proprietorship and reintroduces quarterly reporting for entrepreneurs, lawyers, and notaries.

Return of quarterly reporting for entrepreneurs

Sole Proprietorships and independent professionals — lawyers and notaries — are preparing for the return of quarterly reporting under the Unified report on PIT, military levy, and USC from January 1, 2026.

Until the end of 2025, entrepreneurs continue to report monthly, and from the new year — quarterly. The law provides for the following changes:

1. Sole Proprietorships that pay income for wages, rent, etc., will submit a tax calculation each quarter with a month-by-month breakdown. The deadline for filing is set at no more than 40 calendar days after the end of the quarter. Thus, instead of 12 reports per year, entrepreneurs will submit only 4 quarterly reports for employees.

2. Notaries and lawyers will provide quarterly reports regarding notarized agreements, for example, inheritance or sale-purchase.

3. Nothing changes for legal entities: you continue to file monthly reports.

4. Organizations that ensure payments to prisoners of war submit aggregate amounts in reports without personal data.

USC payment for oneself for Sole Proprietorship

Application for the single tax

If it is necessary to choose or change the single tax group from October 1, 2025, you must:

• submit an application to the tax authority for the simplified system — by September 15 inclusive;

• submit an application to opt out of the single tax — by September 19 inclusive.

Licenses for excisable goods

The most important changes for Sole Proprietorships that have a license for retail trade in fuel, tobacco, and alcohol concern updated requirements regarding the established minimum wage and income.

Minimum wage for retail traders

For Sole Proprietorships without hired employees, the same rules apply.

For violations of legal requirements for 3 consecutive months, the tax authority may cancel the license.

The changes take effect from October 1, 2025.

Excise stamps

Entrepreneurs are prohibited from selling unmarked excisable goods. However, the Law allows importing such products for subsequent marking.

Individuals may import small volumes of unmarked goods for personal use with the following limits:

• no more than 200 cigarettes,

• up to 2 liters of wine,

• no more than 1 liter of strong alcohol.

Fuel license in consumer packaging up to 5 liters

Entrepreneurs who have already obtained a license for small containers may terminate it.

This innovation significantly simplifies fuel trade by avoiding unnecessary formalities.

Among other changes:

1. It is allowed to sell alcohol, tobacco, and liquids for electronic cigarettes via online stores without using bank accounts.

2. Free distribution of raw materials for electronic and tobacco cigarettes is prohibited. Violation entails a fine of 200% of the value of the goods, but not less than UAH 24,000.

Wage indexation in September 2025

In September 2025, indexation does not change. The indexation amounts for the base months (January and February) are:

If salaries were increased from March, indexation is not accrued.

In connection with legislative changes, entrepreneurs are advised to review their reporting and tax policies, prepare for quarterly reporting, and not miss the date of switching to the single tax.

Frequently asked questions

Will local taxes be changed?

Local authorities may, at their discretion, reduce tax rates for the duration of martial law. If an entrepreneur has already paid the tax, such overpayment will be credited towards future payments.

What is the minimum wage for Sole Proprietorships without employees?

Monthly income cannot be less than UAH 16,000. For out-of-town retail outlets — UAH 12,000.

When will the rule for Sole Proprietorship on paying USC for oneself take effect?

The rule will take effect from October 1, 2025.