Due to taxes and business problems, entrepreneurs plan to close more than a quarter of individual entrepreneurs

A little more than a quarter of Ukrainian individual entrepreneurs plan to stop their activities. The main reason for this is the increase in taxes.

According to a survey by Opendatabot, 27% of entrepreneurs intend to close, which is 8621 people.

Of these, 7% (2297 individual entrepreneurs) planned to close this year, and 20% (6324 entrepreneurs) plan to do so next year.

According to analysts, the majority of individual entrepreneurs (62%) decided to close because of the new tax law, and another 19% - because of business problems. Most entrepreneurs among the respondents work in retail (24.6%) and IT (21%). In total, more than 31 thousand individual entrepreneurs took part in the survey.

Opendatabot also emphasized that due to hacker attacks on state registries, closing a business is now either significantly complicated or impossible.

Analysts note that since the signing of the law on military duty, two new sole proprietorships have been closed for every one that has been created. During this period (up to December 17), 24,497 entrepreneurs closed down, while only 10,947 new sole proprietors opened.

Last year, the situation was different: for every four new sole proprietorships, there was only one closed one.

Opendatabot asked Danylo Hetmantsev, the head of the Parliamentary Committee on Finance, for a comment, but has not yet received a response.

On October 10, the Verkhovna Rada passed in the second reading a bill that provides for a tax increase. The new law does not provide for an increase in the military tax for the military.

On November 28, President Volodymyr Zelenskyy signed the law, and it officially came into force on December 1, 2024. This was announced by the chairman of the Committee on Finance, Taxes and Customs, Danylo Hetmantsev.

Earlier, Odesa region ranked fourth in the country in terms of the number of individual entrepreneurs who ceased operations in 2024.

Ірина Глухова