Who Can Be a Group 3 Unified Taxpayer in 2025

This question is addressed in the Tax Code of Ukraine. Part 4 of Article 291 states that business entities using the simplified taxation, accounting, and reporting system are divided into several groups. According to this provision, Group 3 includes individual entrepreneurs (FOPs), whose number of hired employees or persons with whom they have employment relations is not limited. Their annual income must not exceed 1167 times the minimum wage set by law on January 1 of the reporting year (8000 * 1167 = 9,336,000 UAH for 2025).

Group 3 also includes electronic residents, or e-residents, who have registered as individual entrepreneurs. They are allowed to conduct business activities involving service provision, manufacturing, and sale of goods exclusively to non-residents of Ukraine. However, they must meet the following criteria throughout the calendar year: not employ Ukrainian citizens or residents; not receive income from Ukrainian sources (except passive income); and not exceed the income limit of 1167 times the minimum wage as of January 1 of the tax year.

Unified Tax Rates for Group 3 FOPs: With or Without VAT

Group 3 FOPs have two options for unified tax rates, depending on whether they pay VAT. A 3% tax rate applies if VAT is paid in accordance with the Tax Code of Ukraine.

A 5% rate applies if VAT is not paid. This higher rate includes the VAT component within the unified tax. This rate also applies to FOPs involved in the production, supply, and sale of jewelry and household goods made of precious metals and stones, as well as organogenic and semi-precious stones.

Group 3 taxpayers must pay the unified tax within 10 calendar days after the deadline for submitting their quarterly tax return.

Income Accounting and Reporting for Group 3

There are several important aspects to this. FOPs who do not pay VAT keep records in a free form, showing monthly income received. However, those who pay VAT must maintain income and expense records using a standard form, following procedures established by the relevant government authority.

It is also important that Group 3 FOPs maintain separate records of income and expenses related to their agricultural products, distinct from other business activities.

Group 3 taxpayers submit their unified tax declaration to the tax authorities within the period defined for a quarterly reporting cycle. The Tax Code sets this deadline at 40 calendar days after the end of the reporting period. In the declaration, taxpayers must indicate the amount of income taxed at the standard rate and any income subject to a 15% increased rate. The increased rate applies to income exceeding the allowable limit; income from non-registered business activities; income calculated using methods not allowed by the Tax Code; and income from activities that are not eligible for simplified taxation.

It’s also worth noting that accounting can be done on paper or electronically, including via the taxpayer’s online cabinet.

Unified Tax Payment Deadlines for Group 3 FOPs in 2025

As noted above, the unified tax must be paid no later than 10 calendar days after the submission deadline for the quarterly return, which is 40 days after the end of the quarter. Thus, the taxpayer has a total of 50 calendar days after the end of the quarter to make the payment.

For convenience, here are the deadlines for unified tax payments:

• For Q1 2025: May 20, 2025;
• For Q2 2025: August 19, 2025;
• For Q3 2025: November 19, 2025;
• For Q4 2025: February 19, 2026.

Use of Cash Registers (RRO) and Activity Restrictions for Group 3

RRO stands for “registrar of settlement operations,” a device entrepreneurs must use during sales and service provision. It must be registered with the State Tax Service. Use of RRO is mandatory for Group 3 taxpayers, with some exceptions.

RRO is not required for Group 3 FOPs operating in villages, where the annual income per sales point does not exceed 1.09 million UAH, no excisable goods are sold, no remote trade is conducted, and local councils have not mandated RRO use.

According to the Law of Ukraine “On the Use of Cash Registers in Trade, Catering, and Services,” exceptions include:

• Sales of water, milk, kvass, oil, and live fish from tanks and barrels;
• Sales of meals and non-alcoholic drinks in school and vocational institution cafeterias during school hours;
• Sales made without cash transactions (e.g., warehouses, wholesale);
• Payment for services made exclusively through banking systems or money transfer services;
• Sales of newspapers, magazines, envelopes, and postage stamps at kiosks or from carts if these items make up over 50% of total turnover and there are no excisable or complex technical goods, medicines, or medical products.

Additionally, if a transaction is not a settlement operation (e.g., account-to-account transfers, bank deposits, or terminal payments), the use of RRO is not required.

Additional Payments: SSC, VAT, and Other Obligations for Group 3 FOPs

The unified tax rate for FOPs depends on VAT status: 3% for VAT payers and 5% for non-payers. An individual can become a VAT payer either mandatorily or voluntarily. Mandatory registration applies if the last 12 months’ income exceeds 1,000,000 UAH. Voluntary registration is available regardless of income level. The general VAT rate is 20%, but for some categories like medical supplies, it is 7%, as per the Tax Code.

FOPs must also pay the single social contribution (SSC) for future pension entitlements. The minimum SSC is 22% of the minimum wage. In 2025, with a minimum wage of 8,000 UAH, the minimum SSC is 1,760 UAH per month. The payment deadline is the 20th day of the month following the reporting quarter — meaning the taxpayer has 19 days to pay.

Another new obligation is the military levy. On December 1, 2024, Law No. 4015-IX came into effect, introducing new tax rules from January 1, 2025. For Group 3 FOPs, the military levy is 1% of income. The deadline for this payment is the same as for the unified tax — within 10 calendar days after the submission deadline for the quarterly return. Thus, the taxpayer has 50 days after the end of the quarter to pay.