The state budget for 2023: what changes await FOPs?

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Law Services - The state budget for 2023: what changes await FOPs?

🏛 On November 3, 2022, the Verkhovna Rada approved the State Budget of Ukraine for 2023.

📃It provides for a fixed minimum salary and a living wage, based on which annual income limits, single tax rates and a single social contribution for FOPs are calculated.

💰During the entire next year, the minimum wage will be 6,700 hryvnias, and the subsistence minimum will be 2,684 hryvnias.

📌 Annual income limits for FOP in 2023
The income limit of a natural person-entrepreneur under the simplified taxation system is the upper limit of the income of a self-employed person, if it is exceeded, it can be transferred to the general taxation system.

The indicator is tied to the minimum salary, so in 2023 the limits will be as follows:
▪️ 1 group of FOP – 1,118,900 hryvnias, or 167 amounts of the minimum salary;
▫️ 2nd group – 5,587,800 hryvnias, or 834 minimum wages;
▪️ 3rd group (the same for VAT payers and non-payers) – 7,818,900 hryvnias, or 1,167 minimums.
📌 Single tax (EU)
The amounts of the single tax for the 1st and 2nd groups of FOPs are tied to the living wage and the minimum wage, respectively.

So, in 2023, the monthly amount of EP for them will be:
1 group of FOP – 268.4 hryvnias, i.e. 10% of the subsistence minimum;
2nd group of FOP – 1,340 hryvnias, i.e. 20% of the minimum wage.
At the same time, for the 3rd group of FOP, the rates in 2023 will NOT change, if compared with the current year:
5% of income for VAT non-payers;
3% of the income for VAT payers;
special 2% for non-payers of VAT during martial law.

Single social contribution (EUS)
The size of the single social contribution in 2023 will be as follows:
minimum EUV – 1,474 hryvnias per month;
the maximum EUV is 22,110 hryvnias per month.
Thus, the self-employment tax rate for FOPs will be 4,422 hryvnias for each quarter of 2023, or 22% of the current monthly minimum wage.