A farm in Ukraine can be established as an individual entrepreneur or as a legal entity. Depending on this, the taxes to be paid and the system under which they are paid vary, as reported by agronews.ua.
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Taxation Systems
Farmers can choose between the general system and the simplified system (single tax). A special 4th group of the single tax is provided for agricultural producers, which has its own conditions and limitations.
Single Tax
For farmers, the most common option is the simplified system. If a farmer chooses the second group, they pay a fixed amount – no more than 20% of the minimum wage. In 2025, this is approximately up to 1600 hryvnias per month. The rate for the third group is 5% of income (excluding VAT) or 3% (with VAT). The fourth group has a special procedure: the tax is calculated based on the normative monetary valuation of one hectare of agricultural land or land of the water fund.
To be in the fourth group, a farmer must engage exclusively in agricultural activities, not employ hired workers, work only with family members, and own or use from 0.5 to 20 hectares of land. It is also important that as of January 1 of the reporting year, there is no tax debt.
Income Tax
Farm farms registered as legal entities and operating under the general system pay income tax. The rate is 18% of net profit (income minus expenses). Payments are made in advance throughout the year, and after the year ends, a declaration is submitted and a final calculation is made.
Personal Income Tax and Military Fee
Individual entrepreneurs under the general system, as well as members of farm households, pay personal income tax at a rate of 18% and a military fee at a rate of 1.5% of income. This also applies to dividends paid to members of the household.
Unified Social Contribution
All farmers – both individual entrepreneurs and legal entities – pay the unified social contribution (USC) if they have employees. The rate is 22% of the contribution base. In 2025, the minimum USC amount is approximately 1760 hryvnias per month, and the maximum can exceed 35,000 hryvnias, depending on income.
Land Tax
Every farmer who owns or uses land plots is obliged to pay a land tax. The amount depends on the land’s purpose, normative monetary valuation, and rates set by the local council. Payment is usually made annually, and the declaration is submitted based on the location of the plot.
Property Tax
If a farmer has buildings or structures, they are subject to property tax, separate from land. However, there is an important exemption: agricultural buildings are exempt from this tax if they are not rented out or otherwise used.
Other Payments
Depending on the specific activities, a farm may pay other taxes or fees, such as environmental taxes, rent for water or subsoil use, and VAT if the farmer is a registered taxpayer.
Farmers should clearly understand the taxation system they have chosen and timely fulfill their tax obligations. The main payments include the single tax (or income tax), personal income tax and military fee, USC, land tax. In some cases, property taxes, VAT, and other special fees are added.
To avoid fines and misunderstandings, it is advisable to keep track of all payments, monitor reporting deadlines, and consult with an accountant or tax consultant when needed.