A single tax group is a category of payer under the simplified tax system. Sole proprietors can be in groups 1 to 3, which differ in the activities allowed, hired staff, the income ceiling and the rate; group 4 is for agricultural producers.
In plain words
Group 1: sole proprietors with no hired staff who only sell from market stalls or provide household services to individuals; the tax is fixed, up to 10% of the subsistence minimum a month, and income is capped at 167 minimum wages a year.
Group 2: services (including household ones) to single tax payers and individuals, production or sale of goods, catering; up to 10 employees; the tax is fixed, up to 20% of the minimum wage a month; income is capped at 834 minimum wages.
Group 3: sole proprietors with any number of staff and legal entities; income up to 1,167 minimum wages; the rate is 3% of income (if VAT is paid) or 5% (VAT included in the single tax).
The minimum wage is taken as of 1 January of the reporting year, and local councils set the exact fixed amounts within these maximums. Income above the cap is taxed at 15%. There are exceptions by type of activity. The social contribution and the military levy are paid separately.
Sources
- Tax Code of Ukraine No. 2755-VI of 2 December 2010 — Art. 291 (291.4), Art. 293 (293.2 – 293.4) (version of 17 September 2026). Checked 14.10.2026.
Example. A photographer who is a sole proprietor with no staff and works with private customers can be in group 2. If the customers are companies that are not single tax payers (including foreign ones), group 3 is the fit.