Freelancer's Legal Status

FOP group 3 — the default

5% single tax + SSC (min ~UAH 1,760/month in 2025) + 1% military levy on income. Allows working with companies and foreign clients, receiving FX, hiring people.

GPC contract — for one-off projects

Without FOP registration: a corporate client withholds 18% PIT + 5% military levy = 23% of the fee. An individual client cannot be a tax agent — risks for both parties.

LLC — for an agency

When turnover exceeds the FOP limit (~UAH 7.8M/year in 2025) or partners/investors are needed. 18% corporate tax or 3% single tax for single-tax LLCs within the limit.

Foreign employment

A Ukrainian can be employed by a foreign company via contract: taxes paid in Ukraine (18% PIT + 5% levy) via annual declaration, or through an EOR intermediary.

No status at all — risks

Systematic income without registration = illegal business activity: fines up to 15% of undeclared income plus the income itself. One-off services under a civil contract are legal, but «one-off» means once or twice a year.

What to choose

Income up to ~UAH 500k/year with UA clients — a GPC contract may be simpler; above that or foreign clients — FOP group 3. A team and large turnover — an LLC. Start with FOP: 10-minute registration via Diia.