Ukraine's 2026 Tax Thresholds for Simplified System Groups Announced

Ukraine's Simplified Tax System Income Limits for 2026

According to ХВИЛЯ: The Ukrainian government has set the annual income thresholds for businesses operating under its simplified taxation system for the year 2026. This system, designed to support smaller enterprises, requires businesses to stay within their assigned group's limit or formally switch to a different category; failure to do so will result in back taxes and financial penalties.

Income Thresholds by Business Group

The following annual revenue limits will apply to entrepreneurs under the simplified system in 2026:

• Group 1: The annual limit is set at 1,336,000 UAH, equivalent to 167 minimum wages.
• Group 2: The annual limit is 6,672,000 UAH, equivalent to 834 minimum wages.
• Group 3: The highest limit is 9,336,000 UAH, equivalent to 1,167 minimum wages.

Entrepreneurs who exceed these allowable amounts without taking timely action to change their tax group or move to the general system face significant risks. Tax authorities will recalculate taxes for the entire period the limit was exceeded and impose additional fines. This underscores the critical importance of monitoring revenue closely to avoid these negative financial consequences.

The establishment of these annual income caps is a key regulatory measure within Ukraine's tax framework, aimed at fostering the growth of small and medium-sized businesses. Entrepreneurs must remain vigilant to legislative changes and adapt their operations promptly to prevent financial losses. Adherence to the new limits will contribute to stable budget revenues and support the country's broader economic development. For context, the simplified tax system is a popular option for smaller Ukrainian businesses, offering reduced compliance burdens compared to the standard tax regime.