Liquidation Reporting When Closing an FOP: Key Rules and Risks

Closing an FOP is not just a formality. It is a consistent legal and tax process that requires close attention to detail. Entrepreneurs often face the greatest difficulties at the stage of submitting liquidation reports. Any mistake or delay can lead to fines, inspections, and even refusal to deregister from the tax authorities. This article outlines what changed in reporting forms in 2025, the deadlines for submission, and the consequences of non-compliance.

For FOPs on the general taxation system

As of 2025, new requirements established by the Order of the Ministry of Finance dated 26.02.2025 No. 119 introduced changes to the declaration on property status and income. An updated declaration form (identifier F0100214) is now available in the Taxpayer’s Electronic Cabinet. It consists of:

• Appendix 1 (calculation of the Unified Social Contribution);
• Appendix F-2 (general income and expenses of the FOP).

Entrepreneurs must also take into account the updated rules on advance payments, the increased military tax rate, and taxation of controlled foreign companies.

For FOPs on the simplified taxation system

Closing FOPs of the 1st–3rd groups requires submission of a declaration with Appendix 1 (USC Report). Updated forms were introduced by the Order of the Ministry of Finance dated 31.01.2025 No. 57:

• for FOPs of the 1st–2nd groups — F0103407;
• for FOPs of the 3rd group — F0103309.

Important: the liquidation declaration must be submitted for the final tax period in which the activity was terminated.

Deadlines for submission

• FOPs on the general taxation system — within 20 calendar days following the month of closure;
• FOPs of the 1st–2nd groups — by the deadline for annual reporting (until March 1 of the following year);
• FOPs of the 3rd group — by the deadline for quarterly reporting.

After submission, two key dates should appear in the taxpayer’s electronic cabinet: deregistration as a single tax payer and removal from the tax register.

How to properly complete the liquidation declaration

• include all income and expenses from the beginning of the year until the date of closure;
• reflect data for the period in which the business was terminated;
• submit Appendix 1 (USC) together with the declaration — it will not be accepted separately.

Methods of submission

• Electronically — via the Electronic Cabinet or the “My Tax” application (the fastest and most convenient option, with the ability to save drafts);
• On paper — personally, through an authorized representative, or by sending a registered letter.

Liability for missed deadlines

Closing an FOP requires strict compliance with deadlines. Failure to submit on time results in financial penalties:

• 340 UAH — for the first violation within a year;
• 1,020 UAH — for each subsequent violation.

Moreover, the tax authorities may refuse to deregister the FOP until all fines are paid, and late filing often triggers a tax inspection.

Conclusion

Liquidation reporting when closing an FOP is a process that requires maximum attention to detail. The new Ministry of Finance orders of 2025 changed the procedure for filing declarations and appendices, making it essential for entrepreneurs to keep track of the latest forms and deadlines.

To avoid fines and unnecessary inspections, it is advisable to consult a lawyer or accountant in advance, check the forms in your Electronic Cabinet, and ensure timely submission of all reports.