New Changes for Private Entrepreneurs: Abolition of Monthly Tax Reporting and Return to Quarterly Filing
During Ukraine's transitional period towards European integration, government bodies have introduced significant measures to simplify conditions for entrepreneurs, particularly for individual entrepreneurs (FOPs).
Starting from 2026, the mandatory monthly tax reporting for FOPs will be abolished, and instead, the practice of quarterly reporting, which was in place before 2025, will be reinstated.
This decision follows prolonged consultations and was driven by the realization that monthly reporting failed to deliver the expected results and added unnecessary bureaucratic burdens to business operations.
Verkhovna Rada Deputy Halyna Vasylchanko announced this, citing her active participation in working groups and committees that diligently worked on revising this regulation.
The innovation sparked considerable discontent among business owners and legal experts, as it overlooked the particularities of FOP activities, especially their inability to implement staffing reservation mechanisms intended for larger enterprises.
The legislative initiative to revert to quarterly reporting was registered in March 2025 but was not immediately adopted due to lack of requisite votes.
Thanks to persistent efforts by deputies, the norm was eventually revised and included in the approved law effective from January 1, 2026.
Regarding tax policy, an important issue is the review of the taxation model used by large companies, primarily aimed at tax optimization.
Verkhovna Rada Finance, Tax, and Customs Committee Chair Danylo Hetmanczew stated that current tax rates in Ukraine already align with the European average, and there is no immediate need for increase.
Conversely, some sectors might see a reduction in rates, provided it does not conflict with EU requirements, fostering a further reform and development of Ukraine’s economy.