In Ukraine, it is proposed to allow family business without registering as an individual entrepreneur: what taxes will have to be paid

Ukraine plans to introduce a new mechanism for legalizing small family businesses, which will allow citizens to carry out certain types of economic activities without registering as an individual entrepreneur (IEO). The relevant bill No. 15449 was recommended for adoption as a basis in the Verkhovna Rada.

This was reported by the head of the parliamentary Committee on Finance, Tax and Customs Policy, Danylo Getmantsev, the press service of the Verkhovna Rada reports.

The initiative provides for the creation of simplified conditions for citizens who receive income from small, seasonal or irregular economic activities within the household.

Who will be able to work without registering as an IEO

The bill proposes to allow households to carry out small economic activities without the need to register as an individual entrepreneur or create a legal entity.

This primarily concerns citizens who are engaged in seasonal work, provide certain services or receive irregular income from their own activities.

According to the authors of the initiative, the new rules should simplify the legalization of such earnings and reduce the administrative burden on citizens.

At the same time, specific restrictions on types of activities and possible amounts of income are not detailed in the published notice.

What taxes does the bill provide for

One of the key innovations will be the ability to voluntarily apply a preferential tax regime for household income.

In particular, the following are proposed:

5% personal income tax (PIT) instead of the general rate of 18%;

payment of military duty;

submission of a single electronic household declaration.

Thus, citizens will be able to officially declare income from small economic activities using a simplified procedure.

At the same time, the proposed rate of 5% applies specifically to PIT. Military duty is expected to be paid separately.

When will the new rules come into effect

Currently, draft law No. 15449 has only received a recommendation from the relevant parliamentary committee for adoption as a basis.

To enter into force, the document must go through the necessary stages of the legislative procedure, including consideration and voting in the Verkhovna Rada, and after adoption, signing by the President of Ukraine and official publication.

Thus, the ability to carry out family economic activities without registering an individual entrepreneur under the proposed rules has not yet been implemented.

If the draft law is adopted, the new mechanism may become an alternative to traditional business registration for citizens who have small or irregular earnings.