In Ukraine, earning without individual entrepreneurs with a 5% tax will be allowed: what the Rada proposes

Ukrainians will be able to legalize small and irregular earnings without registering as individual entrepreneurs if the Verkhovna Rada adopts bill No. 15449. The new regime could become another option for self-employment without registering as an individual entrepreneur, with a tax rate of 5%. This was reported by Znay.ua.

How Ukrainians will be able to earn without individual entrepreneurs starting January 1, 2027

The bill introduces the concept of 'household.' It will be considered an association of two or more individuals who have the same tax address and conduct joint farming. The new regime is intended to be voluntary.

A single representative of the family will file the declaration on behalf of the entire household. Reporting to the tax authorities can be done remotely through an electronic cabinet. The new rules are proposed to come into effect on January 1, 2027.

The tax will be 5% of the income received. Additionally, a military levy will need to be paid separately. For comparison, Inkorr previously reported on taxes and limits for individual entrepreneurs in 2026.

What restrictions will apply to households in 2027

The annual income of the household will be limited to 834 minimum salaries. With a minimum wage of 8647 UAH, this amounts to about 7.2 million UAH per year. Hiring employees under this regime will not be allowed.

Additionally, households will not be able to engage in activities requiring special licenses. A single individual will not be allowed to be a member of multiple such associations simultaneously. Individuals on full state support will be unable to join them.

The new mechanism may be relevant for Ukrainians who sell their own agricultural products, provide small services, or have occasional jobs. They will have the opportunity to officially declare such income without registering as individual entrepreneurs.

At the same time, the regime provides for joint liability of the household members. In case of tax debts or fines, the consequences may affect not only the person directly receiving the income but also other participants of the association.

Currently, this is just a bill, so the proposed rules may change during its consideration by the Verkhovna Rada. If the document is adopted in its current form, it will create another way to legalize small and irregular earnings.

Earlier, Inkorr reported on tax changes for individual entrepreneurs that were discussed in Ukraine in 2026.