Individual entrepreneurs who work on a simplified taxation system should carefully monitor their annual income. In 2025, there are clear income limits for each single tax group, the excess of which can lead to serious consequences - penalties, changes in a group or transition to a general tax system.
What annual income limits are set for FOP in 2025?
Limits for each group in 2025 are calculated on the basis of the minimum wage set as of January 1, and remain unchanged until the end of the year:
Group 1 - 1 336 000 UAH (167 minimum wages);
Group 2 - 6 672 000 UAH (834 minimum wages);
Group 3 - 9 336 000 UAH (1167 minimum wages).
Exceeding these limits entails administrative measures.
The consequences of exceeding the income limit
According to the Article of the Tax Code of Ukraine, if the annual income of the FOP exceeds the established limits, the amount of excess tax is applied to the amount of excess - 15 percent. In addition, the supervisory authorities can force the entrepreneur to another group or the general tax system.
Entrepreneurs of group 1 can be transferred to group 2 or 3, or to the general system;
Entrepreneurs 2 groups can switch to 3 groups or a general system, but cannot return to 1 group;
Entrepreneurs of 3 groups that have exceeded the limit must change the tax system.
What do you need to know about the general tax system?
There are no income limits on the general system, but there are features. The tax rate is 23 percent of net income (18 percent is a personal income tax and 5 percent - military fee). If the annual turnover exceeds UAH 1 million, the entrepreneur is obliged to register as a VAT payer.
The overall taxation system requires more complex accounting and planning, but gives freedom in scale without income restrictions.
Recommendations for FOP
Experts advise entrepreneurs to closely monitor their income during the year. If you approach the set limits, it is advisable to change the group or tax system in advance to avoid penalties and additional tax loads.
According to lawyer Bohdan Yankiv, timely response will allow the business to work without unnecessary risks and ensure tax stability.
