Individual Merchant (Individuālais komersants) in Latvia is a natural person who conducts entrepreneurial or economic activity on their own behalf. The official IK status is granted after ...
21Aug
Entrepreneur Taxation in Poland and Ukraine: A Comparison
Taxes for Entrepreneurs in Ukraine in 2026
Ukraine maintains a relatively simple simplified system model for small businesses. Most entrepreneurs operate under the 2nd or 3rd group of the single tax. The calculation base for some payments in 2026 is the minimum salary of 8,647 UAH, and the subsistence minimum for able-bodied persons is 3,328 UAH.
Maximum annual income limits are set at:
- for the 1st group – 1,444,049 UAH;
- for the 2nd group – 7,211,598 UAH;
- for the 3rd group – 10,091,049 UAH.
Exceeding the limit may lead to the application of a higher tax rate and the need to switch to another taxation system.
How Much Entrepreneurs in Groups 1 and 2 Pay
For entrepreneurs in Group 1, the maximum single tax in 2026 is 332.80 UAH per month. The military levy is 864.70 UAH. The minimum Unified Social Tax (ЄСВ) is 1,902.34 UAH per month.
Entrepreneurs in Group 2 pay a single tax up to 1,729.40 UAH per month, the military levy of 864.70 UAH, and a minimum ЄСВ of 1,902.34 UAH. The exact single tax rate for Groups 1 and 2 is determined by the local council within the maximum set by the Tax Code.
Entrepreneurs of Group 3
The third group remains one of the most popular options for IT, consulting, marketing, online services, and entrepreneurs working with foreign clients.
In 2026, the following payments apply:
- single tax – 5% of income without VAT or 3% of income for VAT payers;
- military levy – 1% of income received;
- minimum ЄСВ – 1,902.34 UAH per month.
Thus, for a Group 3 entrepreneur without VAT, the effective income tax rate is 6%, plus ЄСВ. Annually, the minimum ЄСВ equals 22,828.08 UAH.
An entrepreneur planning to start activity should also compare an individual entrepreneur (FOP) with a legal entity. A separate category on Poshuk.info offers registration of LLCs and FOPs in Ukraine.
Entrepreneur Taxation in Poland in 2026
The Polish sole proprietorship (Jednoosobowa Działalność Gospodarcza or JDG) is logically closest to the Ukrainian FOP. However, the taxation system is more complex. Taxes, social ZUS, and medical contributions should be considered separately.
An entrepreneur can choose one of the main regimes:
- General PIT scale – 12% up to 120,000 PLN annually, and 32% on the amount exceeding 120,000 PLN.
- Linear tax – a flat 19% tax on income regardless of size.
- Ryczałt – tax on revenue without deducting ordinary costs; the rate depends on the type of activity.
- Special regimes apply only if conditions prescribed by law are met.
Under the general scale, a tax-free amount of 30,000 PLN applies, implemented through tax reduction of 3,600 PLN.
Ryczałt in Poland
The query “ryczałt for Ukrainians in Poland” often arises due to its apparent similarity to the single tax. However, rates depend on the specific activity and classification of income received.
Legislation includes rates of 17%, 15%, 14%, 12.5%, 12%, 10%, 8.5%, 5.5%, 3%, and in some cases 2%. For example, some freelance professions have a 17% rate, a range of intangible services are taxed at 15%, and certain medical, architectural, and engineering services at 14%.
Therefore, an entrepreneur should not choose ryczałt based solely on a low advertised percentage. The actual type of business activity is crucial.
ZUS in Poland: Separate Burden on the Entrepreneur
Social and medical contributions are one of the major differences between taxes for FOP in Ukraine and JDG in Poland.
For entrepreneurs without benefits, the minimum base for social contributions to ZUS in 2026 is 5,652 PLN – 60% of the projected average salary of 9,420 PLN.
The medical contribution depends on the taxation system. For the general scale, it’s 9% of income; for the linear tax, 4.9%. The minimum medical contribution from February 2026 is 432.54 PLN per month. For ryczałt in 2026, three levels apply – 498.35, 830.58, or 1,495.04 PLN monthly depending on annual revenue.
Benefits for New Businesses
Poland also offers tools to reduce ZUS. “Ulga na start” (Start-up Relief) allows not paying social contributions for six full months, while keeping mandatory health insurance. After that, if conditions are met, the entrepreneur can use a reduced base for another 24 months – in 2026 it is 1,441.80 PLN.
Entrepreneurs planning entry into the Polish market should also check business form requirements. Poshuk.info provides dedicated information about company registration in Poland, including JDG, sp. z o.o., and other organizational models.
Poland and Ukraine: Comparison of Taxes for Entrepreneurs
| Indicator | Ukraine | Poland |
|---|---|---|
| Typical small business form | FOP | JDG |
| Income or revenue tax | 5% or 3% + VAT for Group 3 | 12%/32%, 19%, or ryczałt |
| Additional levy | Military levy 1% for Group 3 | No direct analogue |
| Social contribution | ЄСВ from 1,902.34 UAH/month | ZUS depends on benefits and base |
| Medical contribution | Included in ЄСВ system | Paid separately |
| Benefit for new business | No direct equivalent to “Ulga na start” | 6 months without social ZUS under program terms |
| Tax on expenses | Simplified system mostly taxes income | Scale and 19% tax allow accounting for expenses |
| VAT | Depends on system and operations | From 2026, general VAT exemption limit is 240,000 PLN |
In Poland, the VAT exemption threshold from January 1, 2026, has been increased from 200,000 to 240,000 PLN annual sales. For new businesses, it is calculated proportionally to the operating period.
Tax Residency of Ukrainians in Poland
Registering a Ukrainian FOP alone does not mean all taxes can automatically continue to be paid only in Ukraine.
An individual may be considered a Polish tax resident if at least one criterion is met – they have a center of personal or economic interests in Poland or stay in the country for more than 183 days during the tax year.
If signs of residency in both Ukraine and Poland occur simultaneously, provisions of the Convention between states to avoid double taxation are applied. It does not allow an entrepreneur to arbitrarily choose the country for tax payment. Tax residency, income nature, and actual place of business must be established first.
This issue should be analyzed carefully especially by entrepreneurs who live in Poland, work there permanently, have family, housing, offices, or main clients, but continue to receive income through a Ukrainian FOP.
Which Tax System Should Entrepreneurs Choose
Comparing tax percentages alone is incorrect. For realistic calculations, one should consider business margin, expenses, turnover, VAT, ZUS or ЄСВ, number of employees, owner’s country of residence, and tax residency.
Before registering a business, it is advisable to complete the following steps:
- Determine projected annual turnover and net profit.
- Assess the proportion of documented business expenses.
- Check the possibility of using the simplified system or Polish ryczałt.
- Calculate ЄСВ, ZUS, and medical contributions.
- Determine the tax residency of the owner.
- Check VAT rules and cross-border operations.
Such calculations are especially important for IT, consulting, e-commerce, and other business types that can effectively be conducted from different countries. Entrepreneurs can use the category of accounting services on Poshuk.info or financial consulting for payment, reporting, and support calculations.
For Ukrainian businesses, it is also important to monitor the accuracy of declarations, primary documents, and tax payments. Detailed information on practical document verification is described in the article “How to Prepare for a Tax Inspection – Step-by-Step Guide for FOP and LLC”.
How the Polish Tax System Works Business taxation in Poland depends on the legal-organizational form, residency, type of activity, turnover, and profit distribution method. A limited liability ...