Who can work in the first group
The first group is intended for the smallest forms of entrepreneurial activity.
It may include FOPs, which have no employees and are engaged in retail trade of goods in the markets or provide household services to the population.
Another key requirement is that the entrepreneur's annual income should not exceed 167 minimum wages, established on January 1 of the respective year.
Conditions for the second group
The second group includes entrepreneurs who provide services to the population or other single tax payers, produce or sell goods, and also work in the restaurant industry.
The FOP of the second group can have up to 10 employees at the same time.
Annual income should not exceed 834 minimum wages, established on January 1 of the reporting year.
At the same time, separate restrictions are provided for the second group. In particular, it does not include entrepreneurs who provide brokerage services in the field of real estate, provide access to the Internet, or are engaged in the production, supply or sale of jewelry and household items made of precious metals and precious stones.
Who can choose the third group
For the third group, there are no restrictions on the number of employees.
The FOP can work independently or have the number of employees it needs, if other requirements of the simplified system are met.
The main limitation concerns the income: it should not exceed 1,167 minimum wages, established on January 1 of the respective year.
What types of activities are prohibited
The Tax Office reminds that not every business can work on a single tax.
In particular, the simplified system is not available to FOPs that are engaged organization and conduct of gambling or currency exchange.
Restrictions also apply to the production and sale of excise goods, with exceptions expressly provided for by law.
Entrepreneurs engaged in the extraction of minerals, precious metals and precious stones cannot work on a single tax.
Certain species also belong to the prohibited directions financial intermediation, postal and telecommunication services, sale of art objects and antiques, organization of auctions and tour events.
Separate restrictions apply to technical tests, research and audits.
Restrictions also apply to the rental of real estate
The FOP cannot be a single tax payer if it rents out land plots with an area of more than 0.2 ha.
There are also restrictions on the area of real estate: for residential premises - more than 400 square meters m, and for non-residential - over 900 square meters m.
Who still cannot switch to a single tax
The simplified system is also not available for a number of financial and other institutions.
They include banks, insurance companies, pawnshops, credit unions and other financial institutions, as well as securities registrars.
Non-resident natural persons cannot be single tax payers.
Separately, the tax office emphasizes the existence of a tax debt: A sole proprietorship with tax arrears cannot be a single tax payer.
An exception is bad tax debt that arose as a result of force majeure.
The tax debts of the FOP have already exceeded UAH 16 billion
The clarification of the tax appeared against the background of a significant number of entrepreneurs who have outstanding tax obligations.
According to Opendabot, in Ukraine, close to 1.5 million FOPs have tax debts, and the total amount of unpaid taxes is UAH 16.6 billion.
Since the beginning of 2026, the number of debtor entrepreneurs has increased by approximately 3%, although the total amount of debt has decreased by approximately UAH 300 million.
At the same time, the number of new FOPs is also growing. In the second quarter of 2026, an increase in the number of new registrations was recorded in all regions of Ukraine compared to the previous quarter.
Source: DPS, Business Censor.
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