How will taxes change for self-employed individuals of the 2nd and 3rd groups in 2019: the calculation

The Ukrainian Parliament is considering the draft budget for 2019, which was already adopted in the first reading last week, and should be accepted as a whole until November 20. Based on the data from this document, financial consultant Lubomir Ostapiv, the founder of the “Family Budget” project and the Telegram-channel about taxes, prepared analytics on how taxes will change next year for the self-employed individuals of the most popular groups - the 2nd  and the 3rd next year.

The good news for the self-employed individuals: the system in which they work for the year of 2019 will not change significantly (despite the statements of the SFS and legislative initiatives that it’s time to cancel the “simplified system”).

The tax rates remain the same – fixed one for the 2nd group, 5% of the income – for the 3rd, the minimum wage on the basis of which ERUs are charged will increase a bit. The current year’s minimum wage established by the budget was UAH 3,723, the following year it will raise to UAH 4,173. The rate of UST did not change and remained at 22%.

An example of tax calculation for self-employed individuals of the 2nd and 3rd groups Lubomir lists in the following table (in UAH):

Per month
Min.wage UST Single tax for the 2nd group (max) Total
2017 3, 200 704 640 1,344
2018 3, 723 819 745 1,564
2019 4, 173 918 835 1,722
Flat taxes for self-employed individuals per year
UST Single tax (max.)
9,828 10,015 18, 764
9,828 5% of turnover excl. VAT
Note: kopecks rounded