Starting from October 1, 2025, the conditions for exempting individual entrepreneurs (IEs) and other self-employed persons in Ukraine from the payment of the unified social contribution (USC) on their behalf are being simplified, provided that the employer has already paid the contribution on their behalf. This was reported by the State Tax Service of Ukraine.
What are the New Requirements for Exemption from Payment of USC
The requirement for having a primary place of work is being eliminated, which will facilitate the receipt of exemptions for thousands of entrepreneurs. Only two conditions remain for exemption from the USC:
- The employer (including residents of Diya City) has paid the USC for the employee.
- The amount of the paid contribution is not less than the minimum insurance contribution.
How to Calculate USC if the Contribution is Less than Minimum
If the contribution is less than the minimum, the IEs independently determine the calculation base and pay the USC. For single tax payers, this is mandatory; for other self-employed persons – if there is net income, it is mandatory, and in its absence – at their discretion. There are also two conditions:
- the calculation base cannot exceed the maximum amount set by law;
- the amount of USC must not be less than the minimum contribution.
The innovations were introduced by Law of Ukraine No. 4536-IX of July 16, 2025, «On Amendments to the Tax Code of Ukraine and Other Legislative Acts of Ukraine in Connection with the Adoption of the Law of Ukraine «On Integrated Prevention and Control of Industrial Pollution» and Aimed at Improving Certain Provisions of Tax Legislation». They impact Law No. 2464-VI of July 8, 2010, «On Levying and Accounting of the Unified Contribution for Mandatory State Social Insurance».
The changes do not affect the level of social guarantees, preserving rights to pensions and other payments.
Earlier, we reported that businesses in frontline areas will receive tax incentives.