Tax & Legal Weekly Digest


Launch of the procedure for acceptance of applications for Diia.City resident status

Tax & Legal Alert

On 08 February 2022, during the 4th Diia Summit, representatives of the Ministry of Digital Transformation of Ukraine announced the launch of a special tax and legal regime: Diia.City.

One may apply for a resident status on the Diia.City website by following a simplified procedure that consists of:

  1. Registration and verification on website.
  2. Completion and signing of an application for obtaining the Diia.City resident status with a qualified electronic signature.
  3. Receipt of an application acceptance notification by e-mail.

The application lead time is 10 business days. The Diia.City Register, which contains information on legal entities having the Diia.City resident status, is also now available.

According to legislation, obtaining of the Diia.City resident status is subject to several requirements including those regarding types of activities, number of employees and their salaries, etc. There are also restrictions on obtaining the Diia.City resident status.

Diia.City residents may enjoy a special tax and legal regime, in particular:

  1. Special tax rules:
    • Corporate taxes:
      1. 9% income tax subject to special conditions for individual payments;
      2. 18% income tax.
    • Payroll taxes:
      1. 5% personal income tax;
      2. 1.5% military contribution;
      3. 22% unified social security contribution.
    • 0% personal income tax on dividends, provided that such dividends are paid not more than once every 2 years (as an incentive for "angelic" investments).
  2. New form of cooperation with human capital: introduction of a “gig contract” that formalizes legal relations under a civil law contract between an individual – gig-specialist and a company – Diia.City resident.
  3. Possibility to regulate agreements with negative obligations, e.g. "non-disclosure", "non-compete" obligations.

We will be glad to assist you with requirements for residents, application procedures, and other issues that may arise in relation to Diia.City regime.

If you have any questions regarding the information contained in this alert, please do not hesitate to contact our Tax & Legal professionals.

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