FOR FREELANCERS

2. Opening a Bank account in PrivatBank.

After the registration of a business entity, you must open current and card accounts. If you provide services to non-residents or receive remuneration in foreign currency, you must also open an account in foreign currency.

Almost all services for financial management are available in the Privat24 for Business Internet Bank.

In order to open an account without visiting a branch, order a meeting with a manager on the website of PrivatBank. And the manager will come to your office and execute all the necessary documents. You can also open an account for free without leaving your home at the PrivatBank's website.

3. Receiving payments and outpayments from a foreign partner.

If you provide services via the Internet, then in order to receive currency payments to an account from abroad, it is enough to provide the bank with a scanned copy of the invoice certified by you as a confirmation document.

Important! If an entrepreneur co-operates and fulfills orders from companies under the terms of a public offer agreement, then in order to receive funds to the currency account it is enough to submit a letter of intent about the work under the offer agreement to the bank when conducting the first transaction. All further payments from the company indicated in the letter will be credited automatically.

Invoice templates, letters of intent about the work under the terms of an offer agreement and details for currency transfer from foreign customers are available in "Privat24 for business" Internet-bank.

4. Crediting of currency to the account of an entrepreneur.

In accordance with the requirements of the NBU, 50% of currency earnings in the currency of the first category (USD, EUR, etc.) and RUB are subject to mandatory sale (conversion into national currency).

Mandatory sale of 50% of proceeds is carried out on the next day after the receipt of currency by the bank. After the mandatory sale of currency, the received amount in UAH shall be credited to the current account in the national currency.

The part of the currency that is not subject to mandatory sale (50% of the proceeds) is credited to the currency account on the day it is received by the bank.

The income of a freelance entrepreneur (single tax payer) is the income received in foreign currency and transferred to the hryvnia at the official NBU exchange rate as of the date of receipt of funds to the account (p. 292.6 of art. 292 of the Tax code).

Date of receipt of income by a single tax payer is the date of receipt of funds by a single tax payer in monetary form (cash or non-cash), date of signing by the single tax payer of the certificate of transfer and acceptance of goods / works / services received free of charge (p. 292.6 of art. 292 of the Tax Code).

Example

On January 05 the client received USD 100 (to the distribution account) to the bank. PrivatBank credited the 100% of the currency earnings (USD 100) on the same day to a client's currency account.

USD rates were:

The entrepreneur's income will be: (100 * 38.04) = 3 804 UAH 00 kopecks.

The amount of the single tax will be 190 UAH 20 kopecks (3 804 UAH * 5%).

Important! All further transactions with foreign and national currency after the first crediting to the accounts of the entrepreneur (the single tax payer) are not subject to taxation. Interest on deposits and the refund of a deposit to a current account is also not subject to taxation.

UST (unified social tax) for 2024

- For the 1st, 2nd and 3rd groups of single tax payers - UAH 1 760.00

- For taxpayers on a common tax system - UAH 1 760.00

Quarterly amounts are following:

1st quarter - UAH 4 686.00
2nd quarter - UAH 5 280.00
3rd quarter - UAH 5 280.00
4th quarter - UAH 5 280.00

Terms of payment of the UST (unified social tax) in 2024:

For the 1st quarter - on or before April 19;
for the 2nd quarter - on or before July 19;
for the 3rd quarter - on or before October 19;
for the 4th quarter - on or before January 19, 2025.

Important! Since 2017 the termination of entrepreneurial activity does not exempt an entrepreneur from paying UST. If during the reporting month the entrepreneur had no income (proceeds), then he/she is still obliged to pay the UST in the amount of UAH 1 760.00.

It is possible to cease to pay UST only in one case: the termination of entrepreneurial activities (closing of the individual entrepreneur)

Required reports for the tax service:

1. Declaration of the individual entrepreneur. Filing date: no later than 40 days after the end of the reporting period (quarter).

2. UST report. Filing date: 1 time a year until February 10 (if it is not a day off).

You can submit reports to the government services electronically via Privat24 for Business Internet Bank . Read more here.

Income tax - should be paid only in those cases when you transfer the income received from the current account of an entrepreneur to the accounts or cards of other entrepreneurs or individuals.

The tax is 18% of the transfer amount in favor of another entrepreneur or individual. This does not apply to transfers of your income from your current account to your card or other accounts.

Personal income tax may not be paid if payment is made within the scope of documented activities.

The report for the income tax is 1DF form for the quarter in which such a payment was made within 40 days after the end of the current quarter.