Publication date: 13.05.2024
Lawyer
Taxation is an important aspect of any economy, providing necessary funds for government functions and public services. Diia.City residents are subject to a unique set of tax rules that determine the tax base and ensure compliance with national tax legislation. Here is an overview of the tax base for Diia.City residents:
**1. Tax base:**
– The tax base for residents of Diia.City is determined in monetary terms of the object of taxation in compliance with the provisions defined by the Tax Code. This includes considerations such as taxable income, property and transactions.
**2. Taxation of transactions:**
- Operations performed by a Diia.City resident are taxed according to separate rules defined by the Tax Code. Transactions, both monetary and non-monetary, are valued at their value, which ensures fair taxation practices. The tax base for such transactions excludes any withholding tax on non-resident income.
**3. Dividends and income:**
– Dividends paid to owners of corporate rights, except for residents of Diia.City under special conditions, are included in the tax base. Similarly, funds or property returned to owners of corporate rights who are not residents of Diia.City as a result of exit or liquidation are also taken into account in the tax base.
**4. Determination of exceeded amounts:**
- In cases where funds or property returned to non-resident owners of corporate rights exceed certain threshold values, the amount of the excess is included in the tax base. This excess may relate to contributions to the authorized capital or the cost of acquiring shares.
**5. Currency conversion:**
- Amounts of foreign currency involved in operations are converted into national currency (hryvnias) at the official exchange rate established by the National Bank of Ukraine. This ensures the consistency and accuracy of the assessment of the tax base.
**Taxation regime for residents of Diia.City - Special conditions**
Residents of Diia.City enjoy a unique tax regime that reflects the city's innovative and digital environment. Let's understand the specifics of taxation of these residents:
**1. Corporate income tax rates:**
- Residents of Diia.City, classified as taxpayers under special conditions, are subject to corporate income tax at rates determined by the Tax Code. The standard tax rate is set at 18 percent.
**2. Exceptions to the basic tax rate:**
- Certain activities may justify exceptions to the standard tax rate. Example:
- The tax rate increases to 25 percent for specific purposes, such as taxation of bank profits and dividends.
- Activities conducted in accordance with the Law of Ukraine "On Stimulating the Development of the Digital Economy" provide for taxation at a reduced rate of 9 percent.
**3. Incentives for the development of the digital economy:**
- Residents of Diia.City engaged in activities defined by the Digital Economy Development Law enjoy a reduced tax rate of 9 percent. This stimulates participation in the digital economy and promotes innovation in the city.
**4. Determination of the tax base:**
– The tax base for Diia.City residents is calculated in accordance with the provisions of the Tax Code. It takes into account specific criteria related to transactions, dividends and other financial activities of taxpayers under special conditions.
**5. Compliance with tax legislation:**
- Using preferential tax rates, residents of Diia.City must ensure compliance with all tax regulations provided for by law. This includes accurate reporting of income, compliance with deadlines for filing tax returns and transparency of financial transactions.
**Conclusion:**
The taxation regime of Diia.City residents under special conditions reflects the city's desire to promote innovation and digital development. By offering preferential tax rates for certain activities, the city aims to attract investment, encourage entrepreneurship and stimulate economic growth in line with its vision for the future.
Understanding the tax base of Diia.City residents is important for both taxpayers and regulators. By following established tax rules and criteria outlined in the Tax Code, residents can ensure compliance while contributing to the financial stability and development of the city and the country as a whole.
