Individual entrepreneurs, including people with disabilities, engaged in entrepreneurial activities (representatives of SMEs)
Individual entrepreneurs, including persons with disabilities, operate with the primary goal of generating financial profit while simultaneously fulfilling a socially significant function, such as providing jobs for persons with disabilities, offering counseling and social services, and conducting training activities.
The conduct of activities follows the general regulatory order. The legal basis is provided by the Constitution of Ukraine, the Economic Code of Ukraine, the Tax Code of Ukraine, the Civil Code of Ukraine, the Labor Code of Ukraine, the Law of Ukraine on the State Budget, the Law of Ukraine on Business, the Law of Ukraine on State Registration of Legal Entities and Individual Entrepreneurs, the Law of Ukraine on the Principles of Social Protection of Persons with Disabilities in Ukraine, the Law of Ukraine on Social Services, the Law of Ukraine on the Rehabilitation of Persons with Disabilities in Ukraine, as well as relevant by-laws including decrees of the Cabinet of Ministers of Ukraine, decrees of the President of Ukraine, orders of central executive bodies, and decisions and orders of local authorities.
Financial Support
The requirement to meet the statutory employment quota for persons with disabilities and the obligation to pay administrative penalties for non-compliance apply to all employers, including both legal entities and individual entrepreneurs.
Tax Relief
Entrepreneurs with disabilities do not benefit from exemptions from the single tax. However, they are exempt from the mandatory payment of the Unified Social Contribution (USC) for themselves if they are age pensioners or have a disability and receive a pension or social assistance in accordance with the law. The age and disability group are not relevant for this exemption.
The single tax rate for sole proprietors of Groups I and II is calculated based on the minimum wage and subsistence level as of January 1 of the relevant year. In 2021, the rates were as follows: for Group I — up to 10% of the minimum subsistence level for able-bodied persons (2,270 UAH), amounting to up to 227.00 UAH; for Group II — up to 20% of the minimum wage (6,000 UAH), amounting to up to 1,200 UAH. For Group III, the single tax rate is set as a percentage of income: 3% for VAT payers and 5% for non-VAT payers.
Individual entrepreneurs with disabilities must notify the tax authorities upon receiving disability status and becoming eligible for the USC benefit. It is sufficient to submit a written application in any form, accompanied by the relevant supporting documents, including a copy of the certificate from the Medical and Social Expert Commission confirming the disability group and/or a copy of the pension certificate.
The rate of the Unified Tax/USC for sole proprietors with disabilities exempted from paying social insurance tax was set at 1,430.00 UAH at a rate of 22.0% from January 1, 2022 to September 30, 2022.
Social Security Contributions, Public Procurement, Educational and Informational Support
No specific additional provisions are currently in place for individual entrepreneurs beyond the general statutory framework in any of these areas.
