Limits for FOPs from January 1, 2024. What will they be?

From January 1, 2024, the limits for FOPs will be as follows:

• annual income for payers of the first group (167 minimum salaries) – 1.185 million UAH;

• for the second group (834 minimum salaries) – UAH 5.921 million;

• for the third group (1,167 minimum salaries) – UAH 8.285 million.

If these limits are exceeded, the FOP is automatically transferred to another group or to

general taxation system.

Non-profit organizations of the first group pay a single tax in the amount of 10% of the subsistence minimum for those able to work (from January 1 - 302.3 UAH), the second group - 20% of the minimum wage (1,562 UAH). Actual tax rates may be lower, their amount is set by local authorities.

For FOPs of the third group, the rates will not change: 5% – for VAT non-payers, 3% – for VAT payers.

Non-profit organizations also pay 22% of the minimum wage. Starting in 2024, the amount of the tax for deductions by entrepreneurs will increase to UAH 1,562 from January and UAH 1,760 from April.