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Publication date: 01.02.2024
I am studying in the third year of the State University of Economics and Technology.I specialize in contractual, economic and corporate law, in particular, I provide consultations and write articles.
Within the scope of stimulating the development of the digital economy, introducing the latest technologies and bringing the IT industry to a new level, the current legislation provides for a separate legal and tax regime, which was named: "Diya City residency". A resident of Diya City is a legal entity that has acquired the appropriate status, i.e. passed the procedure established by law and whose information is entered in the Diya City register. The legal regime provides for the emergence of a certain amount of rights and responsibilities for the resident, the specifics of his participation in his authorized capital. As for the tax regime, separate tax rates are provided for (PIT, SRS, etc.). Since the acquisition of such a status can have a positive effect on the further conduct of entrepreneurship, it is extremely important to highlight all its features and the procedure for obtaining it.
Features of Diya City residency:
First of all, it is worth noting the advantages of residency, namely: the possibility of concluding gig contracts, that is, contracts of a civil law nature with IT specialists, which will provide them with certain guarantees (vacation, sick leave, etc.) when performing their work function; preferential taxation of personal income tax (5%), the ESR will be based on the minimum wage, protection against unfounded inspections by regulatory bodies; tax rate on withdrawn capital (9%), etc. Along with this, in order to acquire the status of a resident, a legal entity must meet a number of requirements defined by legislation:
- The legal entity must be registered in Ukraine;
Conduct activities related to computer programming, publishing of computer games, software, providing services for the delivery of software applications in the "online" mode, educational activities in the IT industry, data processing, etc. A business entity may carry out one or more of the specified types of activities, but in any case, this must be indicated in its charter, information in the EDR;
The average salary of the involved specialists is at least 1,200 euros;
There should be at least 9 gig specialists in the work team, i.e. individuals who are engaged on the basis of relevant contracts as contractors, executors;
Qualified income for the first 3 months must be at least 90%.
In addition, it is noted that the possibility of acquiring resident status is excluded for a legal entity with 25% or more of its authorized capital owned by the state, a non-profit enterprise, or registered abroad. In the course of one's entrepreneurial activities in the status of a resident, it is necessary to comply with the above-mentioned requirements and to confirm this fact, periodically submit reports to the authorized body. The availability of reporting is one of the tools for monitoring residents' compliance with mandatory requirements. In particular, it is worth submitting the compliance report itself, as well as the independent auditor's opinion. The authorized body has the right to submit requests to which the resident is obliged to respond within 60 days by providing an independent opinion. It is also worth noting that under certain circumstances the loss of the acquired status is also possible, namely: in the case of submitting a corresponding application, non-compliance with the above requirements, violation of the deadline for submitting a report on compliance with the requirements, or if there is a court decision establishing such a discrepancy.
The procedure for acquiring Diya City residency:
- The first step is to contact the Ministry of Digital Transformation. The application can be submitted on the website of the ministry or by e-mail. The content of the application is established in Art. 6 ZU "On stimulating the development of the digital economy in Ukraine". A lawyer for business may be needed during the application process.
Within ten days, the ministry must consider the submitted application. During the review, the submitted documents are analyzed, the information in the registers is checked, and as a result, a final decision on acquiring the status is made. If the application was not returned to the applicant, or if the decision on refusal was not sent within 10 days, then the decision to acquire the status is considered accepted.
At the same time as the decision is made, the ministry enters information about the applicant's acquisition of status in the Diya City register.
Legal services for business in acquiring the status of resident of Diya City:
A business lawyer will help prepare all the necessary documentation, write an application for acquiring resident status. Equally important is the preparatory stage, namely bringing the legal entity into compliance with the legislative requirements. Therefore, legal protection of business support is a guarantee of effectiveness in the process of acquiring resident status.
