How Mobilized Individual Entrepreneurs Can Obtain Exemption from Paying the Single Social Contribution
Individual entrepreneurs, persons engaged in independent professional activities, as well as members of farming households, who are called up for military service during mobilization or who have signed a contract for military service, are automatically exempt from paying the single social contribution (SSC) for themselves.
Such exemption is provided for by paragraph 9-2 of section VIII "Final and Transitional Provisions" of the Law of Ukraine No. 2464-VI "On the Collection and Accounting of the Single Contribution for Compulsory State Social Insurance." It applies to individual entrepreneurs, single tax payers, persons engaged in independent professional activities, and members of farming households, provided they are not employers.
The provision is effective during the special period defined by the Law of Ukraine No. 3543-XII "On Mobilization Preparation and Mobilization."
The basis for exemption is information from the Unified State Register of Conscripts, Reservists, and Persons Subject to Military Service, which contains data on the date of mobilization, contract signing, demobilization, or release from military service. This data is received automatically by the central executive authority implementing state tax policy.
Accordingly, exemption from paying the SSC is applied without submitting additional applications:
- from the first day of the month in which the person was mobilized or signed a military service contract;
- until the last day of the month in which demobilization or release from military service occurred.
As previously reported by "Judicial and Legal Newspaper", even if an individual entrepreneur did not receive income, this does not mean automatic exemption from submitting tax reports. According to Article 49.2 of the Tax Code of Ukraine, the obligation to submit a declaration is determined not only by the presence or absence of income but also by the taxation system and other tax obligations of the entrepreneur.
Thus, individual entrepreneurs of groups 1 and 2 under the simplified taxation system generally pay the single social contribution regardless of whether they received income. Therefore, they are required to submit an annual declaration containing information about the SSC.
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