Business 13:10 16 Oct 2020

Tax season for sole proprietors: how much to pay, how to calculate it, and if applications can help

The time of paying taxes by entrepreneurs is approaching again. New services have come out to help. We analyzed who needs them, whether they should be used and what functions they have. We also calculated how many taxes Ukrainian individual entrepreneurs pay today.

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It is difficult even for a person with a legal education to understand tax legislation. What about people who aren't familiar with the topic? Where to pay taxes? How often and how much? Can you do it from your phone and who should you contact for help? Everything seems so complicated and unfathomable that it's easier for some not to register income at all than to pay fines later for not getting it in time.

To make life easier for entrepreneurs, they design applications to help entrepreneurs pay taxes. So recently an application called Fairo was released. It is available on the App Store and Google Play. You can use it to create invoices for clients, maintain ledgers, fill out tax return forms, and declare your income. It notifies you to do so. It looks much less intimidating in the app than it sounds now. (Although the ratings on the platforms where it's available for downloading range from 1 to 5. A fairly wide range as for an absolute "yes").

The service defines its target audience at the stage of getting to know the product because they position the application as a convenient "fixer" for freelancers. Only taxpayers belonging to the 3rd group can use the app. It's the group with the highest-earning limit, up to 7 million of income per year.

But not everything is so simple. We asked individual entrepreneurs how effective this application is to them:

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