Not all sole proprietors have to pay the single social contribution: which entrepreneurs are exempt from the fee
In Ukraine, the single social contribution (SSC) is a mandatory payment for most employees and entrepreneurs. The payment of this contribution forms the insurance record, which in the future affects a person’s right to a pension.
As explained by the State Tax Service, the legislation provides exceptions. Some categories of sole proprietors may not pay the SSC for themselves.
Sole proprietors exempt from paying the single social contribution are those who:
- are registered in temporarily occupied territories;
- are simultaneously employed workers and their employer pays the SSC for them;
- receive a pension;
- have a disability and receive a pension or social assistance;
- are serving in the military due to mobilization — for the entire period of service;
- work under the general taxation system and do not receive income.
Additionally, sole proprietors may not pay the SSC regardless of the taxation system if they receive childcare benefits until the child reaches one year of age.
The single social contribution is credited to the Ukrainian state insurance system. These funds finance pension payments, social programs, and other types of state assistance.
Earlier, we reported that the number of sole proprietors in Ukraine is increasing. According to the Ministry of Justice, in the first quarter of this year, Ukrainians opened 74,439 sole proprietorships, which is 34% more than last year. For comparison, 55,525 sole proprietorships were registered in the first quarter of 2023, and 48,959 in the same period of 2022.
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