Reduction of unified social tax benefits: what will change for individual entrepreneurs and self-employed from October 1
26 September 2025 19:24
Starting from October 1, 2025, the rules under which an individual entrepreneur (IE) or other self-employed person can be exempted from the obligation to pay the unified social tax (UST) on their own will change, "Komersant Ukrainian" reports.
The State Tax Service (STS) says that “the number of conditions” that give the right to such an exemption will be reduced – now there are two. These changes will affect those whose employer partially or fully pays the unified social contribution for the employee.
What exactly is changing
Instead of several conditions for automatic exemption from paying the unified social contribution, sole proprietors and other self-employed persons will have only two:
- The employer has already paid the unified social contribution (including the Diia City resident employer).
- The amount of the unified social contribution paid by the employer is not less than the minimum insurance premium.
If the employer has paid less than the minimum contribution, the individual entrepreneur or other self-employed person must independently calculate the base and pay additional unified social contribution (according to the rules in force since October 1).
Who will be affected / who will be affected by the change
- For sole proprietors, the additional payment of ERUs is mandatory (for profitable months).
- For other self-employed: if there is net income for the period, the payment of the USC is mandatory; if there is no income, the payment is optional.
- A separate rule applies to mobilized sole proprietors who have employees: according to the State Tax Service, starting from October 1, they may be exempt from paying the unified social contribution for themselves, provided that the employer has paid the minimum insurance premium.
How the base and limitations will be calculated
- The unified social contribution base cannot exceed the maximum amount established by law (in 2025 – 20 minimum wages per month).
- The amount of the USC per month cannot be less than the minimum insurance premium (in 2025 – 22% of the minimum wage; minimum wage = UAH 8,000 → minimum contribution ≈ UAH 1,760 per month). If the employer pays less, the entrepreneur must pay the unified social contribution in the amount of the minimum contribution.
Explanation from the State Tax Service
“There will be fewer conditions under which sole proprietors and other self-employed persons for whom the unified social tax has been paid in full by the employer will have the right not to pay the unified social tax for themselves – they will no longer need to have a main place of work,” the State Tax Service said in a clarification.
The State Tax Service emphasizes that the rules “will make the system fairer without changing the level of social protection.”
Practical implications for businesses and accountants
- Accountants and individual entrepreneurs should check whether the employer actually transfers the minimum insurance premium on a monthly basis; if not, they should pay extra or formulate an internal policy of additional payments.
- For those who previously relied on the “status of the main place of work” as a ground for exemption, this ground is no longer valid, and therefore additional payments may be required.
Other tax innovations along with changes to the unified social contribution
The day before, updated rules for the registration of tax invoices in the Unified Register also came into force (starting from September 27), the State Tax Service launched a dashboard for monitoring tax revenues, and controls using SAF-T UA are already being applied in practice – all part of a large package of changes in the tax system.
Possible risks and issues to monitor
The risk of administrative confusion in the first quarter of the new rules: errors in the calculation/transfer of the unified social contribution, requests for additional payments from tax authorities.
The need for additional clarifications for specific categories (e.g., sole proprietors who are simultaneously employed part-time or mobilized).
Advice for individual entrepreneurs and the self-employed
- Check whether your employer pays the unified social contribution on a monthly basis and in what amount.
- If the amount paid by the employer is less than the minimum contribution, prepare to pay the additional contribution yourself.
- Consult your accountant about the accrual base and limits (maximum/minimum base).
