Individual Entrepreneurs and Loans in 2026: How Tax Burden for Businesses Will Change

Financial Loans for Individual Entrepreneurs

Individual entrepreneurs (IEs) can receive business loans that are not included in their income, provided they are repaid within the stipulated time. In 2026, changes in the tax burden for IEs are planned, which are due to an increase in the minimum wage and the minimum subsistence level.

According to the Tax Code in subparagraph 14.1.258, a financial loan is defined as funds received for targeted use for a specified period at interest. IEs can take out loans from various financial institutions, including banks-residents of Ukraine, foreign financial institutions (non-residents), non-bank financial institutions, international financial organizations, and other non-resident creditors.

Changes in Tax Burden for 2026

In 2026, the minimum wage will amount to 8,647 hryvnias, and the minimum subsistence level for working individuals will be 3,328 hryvnias. This increase will affect the taxation of IEs. For IEs of group I, the income limit in 2026 will be 1,444,049 hryvnias. The single tax for this group will amount to 328 hryvnias per month, and the military tax will be 864.70 hryvnias per month. The minimum insurance contribution (EIC) for IEs of group I will amount to 1,902.34 hryvnias per month.

• For IEs of group II, the income limit in 2026 will be 7,211,598 hryvnias, while the single tax will be 1,729.40 hryvnias per month.
• The income limit for IEs of group III in 2026 will be 10,091,049 hryvnias, with the single tax rate at 5% of income or 3% if VAT is paid.

Bohdan Yankiv states: 'The key feature of a loan: the received funds are subject to mandatory repayment within the deadlines defined by the contract.'

Thus, changes in 2026 may significantly impact the financial position of individual entrepreneurs in Ukraine.

The changes planned for 2026 may have a significant impact on the business environment for individual entrepreneurs in Ukraine. The increase in the minimum wage and the minimum subsistence level, as well as the adjustment of tax rates, may lead to changes in the financial strategies of IEs. This also reflects the overall trend towards improving the socio-economic conditions for entrepreneurs, which may stimulate the development of small and medium-sized businesses in the country.