After tax increases in Ukraine, tens of thousands of sole proprietors closed down – Opendatabot

After Volodymyr Zelensky signed the law increasing taxes, 22,521 individual entrepreneurs (FOPs) ceased operations.

This data was provided by the monitoring service for registration data, Opendatabot.

On the day the document was signed, 2,332 businesses closed, followed by over a thousand closures daily. By comparison, under normal circumstances, about 700 entrepreneurs close their businesses in Ukraine per day.

In total, since the beginning of 2024, 254,288 FOPs have ceased operations. The highest number of closures occurred in March—28,690, although spikes were also observed at the end of reporting periods. This trend is attributed to entrepreneurs seeking to avoid additional tax obligations and simplify their accounting processes.

The adoption of the law increasing taxes played a significant role in the surge of FOP closures in the fall. Some entrepreneurs view the new taxes as unfair, although officials argue that the rates are low compared to those in European Union countries.