By 2030, the Ukrainian government aims to tighten tax rules significantly

“National Revenue Strategy” includes scrapping or making stricter the simplified tax system for certain groups, boosting excise duties to match EU levels and implementing a graduated income tax structure.

Changes to the simplified tax system will involve various phases: for instance, a transition period for certain business groups to gradually shift to standard corporate tax rates. Individual entrepreneurs will see mergers in categories and varying tax rates, gradually increasing with mandatory cash register compliance. Additionally, adjustments in tax categories and criteria are planned for farmers.

Individual entrepreneurs’ registration and closure processes will be tied to opening or closing bank accounts, streamlining administrative procedures. These tax modifications are expected to roll out between 2025 and 2027. Furthermore, a reform proposal includes a progressive income tax system, potentially with increased rates for higher income brackets. Other planned reforms encompass scrapping tax-free income thresholds, introducing personalized social aid and reviewing tax exemptions for personal income. This includes the possibility of refunding certain expenses such as child education and business startup costs.