The numbers side by side, as at 2026
| Gig contract (Diia City) | Sole trader, group 3 | |
|---|---|---|
| Tax on income | 5% personal income tax | 5% single tax without VAT, 3% with |
| Military levy | 5% | 1% of income |
| Rates combined | 10% | 6% |
| Social contribution | UAH 1,902.34/month, paid by the company | UAH 1,902.34/month, paid by the contractor |
| Income ceiling | none | UAH 10,091,049 per year |
| Who withholds and files | the company | the contractor |
The social contribution is identical in both columns because it is 22% of the UAH 8,647 minimum wage. Same figure — different payer, and half the answer is in that difference.
Verified 17 September 2026. Both regimes track the minimum wage and the Diia City rules, so check the current wording before deciding.
Who pays what, on UAH 100,000 a month
Gig contract. The specialist receives UAH 90,000: the company withholds 5,000 of income tax and 5,000 of military levy. On top, the company pays UAH 1,902.34 of social contribution from its own pocket. Company cost: UAH 101,902.34.
Sole trader. The specialist receives the full UAH 100,000, then pays UAH 5,000 single tax, UAH 1,000 military levy and UAH 1,902.34 social contribution. They keep UAH 92,097.66. Company cost: exactly UAH 100,000.
So on arithmetic alone the sole trader wins for both sides: the specialist keeps about two thousand more, the company spends about two thousand less. If money were the only question, nobody would sign a gig contract.
The constraint that removes half the options
A gig contract can only be signed by a Diia City resident — a legal entity that meets the regime's qualifying requirements and has been admitted to it.
If your company is not a resident, there is no choice between gig and sole trader. There is a choice between sole trader and an employment contract, which is a different fork with different numbers.
So the order of questions is: first, whether Diia City makes sense for your company at all, and only then how to engage people. Reversing that order is how companies join a regime for the sake of a rate that turns out to be higher.
The risk that is not in the rates
This is where arithmetic stops.
A contractor who works to the company's schedule, on the company's equipment, reporting to a manager and invoicing the same amount every month for years, looks to an inspector like an employee. That is treated as disguised employment, and the consequence is assessed income tax, social contributions and penalties — on the company, not the contractor.
The gig contract removes the problem by construction: it deliberately carries features of employment, such as paid breaks, sick leave and working patterns, while remaining a civil-law agreement. You pay the higher rate for the legal ability to direct the person like an employee.
Our position: if someone works for you every day, full time, for years, four percentage points is insurance rather than overpayment. The objection applies where the engagement is genuinely project-based — the contractor has other clients, chooses when to work, and answers for the result rather than for attendance. There the sole trader is both cheaper and more honest.
Which suits whom
Gig contract — the company is already a Diia City resident, people work continuously and to your rhythm, and you are prepared to administer the taxes.
Sole trader — the engagement is project-based and the contractor independent, or your company is outside Diia City and the question does not arise.
Employment contract — when neither of the above describes reality. It is the most expensive option and the only one where disguised employment cannot be alleged at all.
The cheapest option on paper and the cheapest across three years are often different options. Price the rate together with the cost of being wrong.