Sole proprietorship or company in Ukraine: tax comparison
Taxes and contributions for a sole proprietor under each available system and for your own company, for a resident of the chosen country with the same profit.
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Form
Sole trader, single tax group 1
Sole proprietorФізична особа – підприємець, платник єдиного податку першої групи
Fixed single tax of up to UAH 332.80 a month, military levy of UAH 864.70 a month and USC; only retail sales at markets and household services to individuals are allowed.
Conditions
Only retail sales of goods at markets and household services to individuals; IT and consulting for companies are not allowed.
No employees; income up to UAH 1,444,049 in 2026 (167 minimum wages).
Sole proprietorФізична особа – підприємець, платник єдиного податку другої групи
Fixed single tax of up to UAH 1,729.40 a month, military levy of UAH 864.70 a month and USC; services may be provided only to single-tax payers and individuals.
Conditions
Services only to single-tax payers and/or individuals; services to companies and entrepreneurs on the general system are not allowed.
Up to 10 employees; income up to UAH 7,211,598 in 2026 (834 minimum wages).
Sole proprietorФізична особа – підприємець на загальній системі оподаткування
18% PIT and 5% military levy on net income (revenue minus documented expenses; USC is not an expense); USC is 22% of net income, at least UAH 1,902.34 a month, on a base of at most UAH 172,940 a month.
Conditions
No income limit; an income and expense ledger and documents for every expense are required; annual tax return.
VAT registration is mandatory once taxable supplies exceed UAH 1,000,000 in 12 months (VAT is not included in the calculation).
CompanyТовариство з обмеженою відповідальністю на загальній системі оподаткування
The company pays 18% corporate income tax; from dividends to the owner it withholds 5% PIT and 5% military levy.
Conditions
If the owner works as director under an employment contract, the company must pay at least the minimum wage (UAH 8,647 a month) with PIT, military levy and 22% USC — not included in the calculation.
VAT registration is mandatory once taxable supplies exceed UAH 1,000,000 in 12 months (VAT is not included in the calculation).
An LLC may also opt for single tax group 3 (income up to UAH 10,091,049); dividends are then subject to 9% PIT — not shown here.
CompanyТОВ — резидент Дія Сіті, платник податку на прибуток на особливих умовах (податок на виведений капітал)
Retained profit is not taxed; on dividends paid the company pays 9% (the base is the dividend amount), and the owner pays 5% PIT and 5% military levy.
Conditions
Diia City resident status: on average at least 9 employees or gig specialists, average pay at least the equivalent of EUR 1,200 a month, at least 90% of income from qualifying activities (programming, IT consulting, etc.). Under the 'no employees' assumption this is not met — shown for comparison.
Dividends are exempt from PIT if the Diia City resident has paid no dividends for two consecutive calendar years (not applied in the calculation).
If the owner works as director under an employment contract, the company must pay at least the minimum wage (UAH 8,647 a month) with PIT, military levy and 22% USC — not included in the calculation.
Business activity: IT and consulting services for business clients (companies and entrepreneurs)
One owner who is a Ukrainian tax resident, no employees, no other income, no children; full year 2026; amounts in UAH.
USC for single-tax sole traders is the minimum (UAH 1,902.34 a month). For a sole trader on the general system USC is not an expense: the base for USC, PIT and the military levy is net income (revenue minus expenses).
VAT is not included. Expenses are documented business expenses; under single tax group 3 they do not reduce tax.
For companies: the owner takes no salary and has no employment contract, so no USC is due; profit after tax is either fully paid out as dividends or kept in the company.
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