The procedure for registration of employees of the FOP employer and the list of documents to be obtained from potential employees are basically similar to the procedure for registration of employees of any other enterprise. However, as regards the restrictions on the number of employees that can be employed by an individual entrepreneur according to the current legislation, it should be noted that these restrictions will differ depending on the taxation system in which the FOP is located.

Individual entrepreneurs who are on the general taxation system are not subject to any restrictions on the number of employees.

Taking into account the simplified taxation system, restrictions on the number of employees for individual entrepreneurs will be different depending on the group of single tax payers.

The legislation does not provide for the availability of employees for taxpayers of the first group uniform tax.

For individual entrepreneurs who belong to the second group of the single tax, a limit of no more than 10 employees has been established.

There is no limit to the number of employees for sole proprietorships paying the single tax of the 3rd group.

As mentioned above, the rules for registration of hired workers by the FOP are regulated by the Labor Code and are the same for almost all employers.

The document that begins the registration of any employee is an application for employment, which must indicate the date of starting work and the position.

Next is the conclusion of an employment contract. The employment contract between the employer and the employee is concluded in writing in two copies, one for each of the parties.

Next, the employer must issue an order to hire the employee. The employer is obliged to inform the tax office about the acceptance of the employee before allowing him to work.

After that, a corresponding entry is made in the employee's labor book.

As a general rule, in order to change the types of economic activity carried out by an entrepreneur, it is enough to apply for a change in the KVED, after which the types of economic activity will be included or excluded from the Unified State Register.

According to paragraphs 298.3.1 of the PKU single tax payers in the event of a change in the information entered in the register of single tax payers must submit a statement, which, in particular, includes information about the change in types of economic activity.

In case of carrying out types of activities not specified in the register of single tax payers, single tax payers are obliged to pay other taxes and fees determined by the PKU from the first day of the month following the tax (reporting) period in which such types of activities were carried out (item 7 of item 298.2.3 of the Code of Criminal Procedure).

If an individual entrepreneur decides to end his activity, he must apply to the state registrar. A natural person-entrepreneur is deprived of the status of an entrepreneur from the date of entering the relevant entry into the Unified State Register.

In order for you not to have problems with the tax office, it is necessary to pay taxes on time and submit appropriate reports.

In sole proprietorships that are taxed according to a single tax and do not have employees, the reporting consists of one report — the Tax Declaration of the payer of the single tax of a natural person - an entrepreneur. The first and second groups regularly submit an annual declaration (no later than 60 calendar days after the end of the reporting year) using the F01034 form. The third group reports quarterly (no later than 40 calendar days after the end of the reporting quarter) using the F01033 form. Along with the annual return, Annex 1 must also be submitted. This Annex replaces the EUV report, which is now submitted separately.

This covers the full reporting of the sole proprietorship on the single tax, provided that the sole proprietorship has no employees and/or has not paid income to other sole proprietorships or individuals. If such payments were made, you must additionally submit report F05001 — Tax calculation of the amount of income accrued (paid) in favor of taxpayers — natural persons, as well as the amount of tax withheld from them and the amount of the accrued single contribution. This report is submitted quarterly.

FOP reporting on the general system

The list of taxes paid by the FOP from the profit on the general taxation system:

1. **Personal income tax ** (personal income tax) = 18%;

2. Military levy = 1.5%;

3. EUV (unified social contribution) = 22%;

4. employee taxes if any.

Obligations to pay a single contribution to the mandatory state social insurance (EUV) arise quarterly and must be calculated and paid by the 20th day after the end of each quarter.

Calculation and payment of personal income tax (PIT) are carried out quarterly. Payments related to the 1st, 2nd and 3rd quarters are called advance payments and must be paid by the 20th of the month following the end of the respective quarter.

In the case of the 4th quarter, the advance payment from personal income tax is not calculated and paid, since the total amount of tax for the year takes into account already paid advance payments. This payment must be made within 10 calendar days after the deadline for submitting a declaration of assets and income.

Military levy is calculated based on the results of the year and is paid together with the annual amount of personal income tax.

Trademarks are usually used to distinguish the services or goods of one manufacturer from the services or goods of another manufacturer. They can consist of verbal images (a set of letters, words, phrases), images (symbols, pictures), or combinations of images and words. Trademark registration can be an important strategy for protecting your intellectual property from fraudsters and competitors.

A trademark is an indicator that a trademark is the intellectual property of a private person or company. For example, registering a logo prevents competitors from using it.

Package of documents for trademark registration:

• Application for trademark registration

• Image of the trademark

• Detailed description of the trademark

• A detailed list of services and goods for which the applicant wishes to register a trademark or signs.

The certificate of trademark registration is issued after the state registration of the mark. The certificate is received by the person who has the right to it.

Basic principles of independent accounting and tax accounting:

• pay taxes;

• submit reports;

• keep income records;

• collect and store primary documentation;

• monitor changes in legislation.

Reports to be submitted by the FOP

Entrepreneurs on the single tax of the 1st and 2nd groups:

• Tax declaration of a single tax payer - an individual - an entrepreneur (for groups 1 and 2) - Reporting period - one year, i.e. submitted once a year within 60 calendar days after the end of the reporting period (until March 1)

• Report from the EES - Reporting period - one year, i.e. submitted once a year within 40 calendar days after the end of the reporting period (until February 10)

Entrepreneurs on the single tax of the 3rd group:

• Tax declaration of a payer of a single tax - an individual - an entrepreneur (for the 3rd group) - Reporting period - quarter

• Report from the EES - Reporting period - one year, i.e. submitted once a year within 40 calendar days after the end of the reporting period (until February 10)

For individual entrepreneurs who are taxed under the single tax of groups 1 and 2, there is a general report form. For the FOP on the uniform tax of group 3, the form of the report visually practically does not differ from the declaration of taxpayers of the uniform tax of groups 1 and 2.

The principle of its filling is quite simple:

• First, you need to fill out the report header. Place an "X" next to the "Reporting" return type and select the reporting period you are submitting (for example, "Year"). Also, indicate the name of the tax inspectorate with which you are registered as an individual entrepreneur, as well as your personal data, the registered address of the sole proprietorship and the taxpayer identification number (TIN).

• In the first section of the report, indicate the number of employees (average for the year). If you have no employees, enter zero. Next, it is necessary to list all types of economic activity (KVED) that brought you income during the reporting period.

• In section 2 or 3 depending on your tax group, complete the table that corresponds to your single tax group. Although the tables are different for groups 1 and 2, the content is the same. In this table, enter the total amount of single tax you paid during each quarter, as well as the total income you received during the year. It is important that the amount of income for the year indicated in the report coincides with the amount of income for the year indicated in the Income Book.

The general and simplified taxation systems differ primarily in the amount of taxes and accounting features. "Simplified" have restrictions on the amount of income and the number of employees (for certain groups). At the same time, these conditions can be considered optimal for micro and small businesses, due to which a significant number of individual entrepreneurs and legal entities in Ukraine choose this principle of accruals.

General taxation system

When choosing the general system, the FOP pays taxes on net income, that is, on the difference between revenue and documented expenses.

This system is required to pay taxes on net taxable income:

1. 18% - personal income tax, paid in advance payments by the 20th of the month following the quarter (by April 20, July and October, respectively);

2. 1.5% – military levy, paid at the end of the year;

3. 22% is a single social contribution, paid in quarterly advance payments no later than the 20th of the month following the quarter.

There is no income limit on the general system, but if it exceeds 1 million hryvnias in 12 months, you need to register as a VAT payer and pay this tax, as well as submit a monthly declaration.

Simplified tax system

When considering the choice of a simplified taxation system, first of all, it is worth keeping in mind that there are restrictions for some types of activities. Among such restrictions, it is worth noting all types of financial intermediation, production and sale of excise goods (except for the retail sale of beer and table wines), mining, production of precious metals, sale of antiques and some other types of activities.

It is worth noting that the simplified taxation system has its advantages, in particular, the simplified accounting of accounting data. However, it also has its limitations. The simplified system is divided into four groups, each of which has its own characteristics, such as permissible types of activities, the maximum amount of income, the maximum number of employees and other parameters.

1. The simplified system of taxation in the first group applies exclusively to individual entrepreneurs. It is characterized by a fixed amount of tax, which remains constant regardless of the amount of income received. The best example of such a simplistic person is a person who is engaged in retail trade in the market and works independently.

2. The simplified taxation system in the second group is also available only to individual entrepreneurs and involves a fixed amount of tax. Citizens in this category can engage in offline and online retail, provide various services (for example, smartphone repair or freelance), but are prohibited from entering into agreements with companies.

3. The simplified system of taxation in the third group is available to both individual entrepreneurs and legal entities. The basis of taxation is income, from which a fixed percentage must be paid. There are many opportunities in this variant of activity, in particular, various types of trade and provision of services, including cooperation with legal entities.

4. The simplified taxation system in the fourth group applies exclusively to producers of agricultural products (individual entrepreneurs or legal entities, for example, farms). The amount of the tax is determined on the basis of the normative monetary valuation of the land and the total area of the plots.

Representatives of the tax service were asked about the eligibility of an individual entrepreneur (FPO) paying a single tax to enter into an agreement on joint activity without creating a legal entity with another sole proprietorship that also pays a single tax.

In the DPS letter dated September 1, 2021 No. 3215/IPK/99-00-04-03-03-06 there are no comments regarding the possibility of such an action.

The tax authorities came to the conclusion that natural persons - entrepreneurs who pay a single tax, have the right to enter into agreements on joint activities without creating a legal entity with other business entities.

However, these natural persons - entrepreneurs should take into account that the types of activities within the framework of such contracts must correspond to the types of activities for which the simplified taxation system can be applied.

If the agreement on joint activity is not registered with the regulatory authorities, and each participant of such an agreement is registered with the relevant authorities, then each participant of the agreement independently fulfills the duties of a taxpayer.

In this case, an individual entrepreneur, who is a single tax payer and participates in a joint contract, must take into account the income received from carrying out activities in accordance with the contract on joint activities, together with the profit from his own economic activity.

Such actions of the manager are illegal!

Absenteeism is the absence of an employee from work for more than 3 hours. continuously or in total during the working day without valid reasons and without a corresponding warning to the employer in the prescribed manner.

In order to terminate an employment contract with an employee based on his absence at the workplace for three hours during the working day, the owner or the body authorized by him must have reliable evidence certifying the absence of the employee at the workplace during the specified period.

The main thing in dismissal for absenteeism is the absence of a valid reason for the employee's absence.

The legislation does not define the list of circumstances under which absenteeism is considered committed for valid reasons. Therefore, when deciding on the validity of the reasons for the employee's absence from work, the court must proceed from specific circumstances and take into account the evidence available in the case. (Resolution of the Supreme Court No. 199/8766/18 of April 22, 2020)

Regarding the term "good reasons", which prevent the employer from considering the employee's absence from work as absenteeism, according to judicial practice, such good reasons can include mandatory attendance at authorities, such as, for example, the prosecutor's office, the court or **military commissariat (TCC SP) ** when requested.

Therefore, a summons to the TCC SP cannot be considered absenteeism.

Regardless of the chosen taxation system, entrepreneurs have the opportunity to carry out their activities both on the territory of Ukraine and abroad. In this case, their clients, customers, suppliers and executors of works (services) can be both citizens of Ukraine and foreign persons. However, when interacting with foreign counterparties, there are additional aspects that need to be taken into account in the accounting of a natural person-entrepreneur (FOP), since your activity is considered foreign economic (FEE).

Natural persons - entrepreneurs (FOP) can engage in foreign economic activity within the limits of their chosen types of activities, which are specified in the Unified State Register of legal entities, natural persons - entrepreneurs and public formations. If the FOP uses a simplified taxation system, the necessary types of activities must also be indicated in the Register of Single Tax Payers. At the same time, system-wide entrepreneurs are not limited in their choice of activities.

I draw your attention to the following aspects:

• There is no separate KVED for carrying out ZED

• FOPs of the II group in the field of foreign trade can only carry out wholesale trade

• FPOs of the III group in the field of foreign trade can not only carry out trade, but also provide services and perform work.

To carry out foreign economic activity, it is necessary to open a foreign currency account. In this case, the entrepreneur can choose the bank where his hryvnia account already exists, or choose any other bank of his choice.

Foreign currency income received on the entrepreneur's foreign currency account must be converted into hryvnia at the official rate of hryvnia to foreign currency established by the National Bank of Ukraine on the date of receipt of such income.

The date of receipt of income by the payer of the single tax is the date of receipt of funds directly to his current account.

First of all, for the correct legal registration of relations with foreign counterparties, as well as with Ukrainian ones, it is recommended to conclude agreements (contracts). Special attention should be paid to the contract of foreign economic activity (FET), and it is better to contact a professional lawyer for its preparation. The contract must clearly define the conditions of performance of works or provision of services and their confirmation.

In addition, during the inspection by the tax service, there may be questions about the primary documents that confirm the data indicated in the tax return. Such documents can be bank statements, acts of services rendered, invoices, etc., which confirm receipt of income from foreign economic activity.

In some cases, only a paid invoice containing all the necessary details may be sufficient. However, to determine the required primary documents in your particular case, you should refer to the relevant provisions in the contract. If the contract states that payment on the invoice is confirmation of the services provided or the work performed, and the payment indicates the full and proper performance of the work or services without any claims on the part of the counterparty, then in this case the invoice will be sufficient.

The presence of open criminal proceedings is not a reason for postponement of mobilization.

The list of persons who are not subject to conscription for military service during mobilization is defined in Article 23 of the Law of Ukraine "On Mobilization Training and Mobilization" - https://zakon.rada.gov.ua/laws/show/3543-12/conv#n420