Maternity Leave for Sole Proprietors: Who Is Eligible for Tax Exemption During Pregnancy
Individual entrepreneurs in the second group of the single tax can be exempted from paying tax during the period of temporary disability due to pregnancy and childbirth. However, this benefit applies only under certain conditions.
As explained by tax authorities, according to paragraph 295.5 of the Tax Code of Ukraine, single tax payers of the first and second groups who do not employ hired workers have the right not to pay the single tax:
- for one calendar month per year during leave;
- for the duration of illness, if it lasts 30 or more calendar days and is documented.
This rule also applies to leave related to pregnancy and childbirth. To receive the exemption, a sole proprietor must provide an extract from the Electronic Register of Disability Certificates confirming the period of temporary disability.
Thus, a sole proprietor of the second group of the single tax without hired employees is not obliged to pay the single tax during maternity leave if they have confirmation in the form of the relevant extract from the electronic register.
At the same time, pregnancy or childbirth alone is not an automatic basis for tax exemption — documentary confirmation of the disability period is required.
Earlier, we wrote that the number of individual entrepreneurs 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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