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Publication date: 14.05.2024
Lawyer
Why is it beneficial for your IT company to become a resident of Diia.City?
The Ministry of Digital Transformation is actively talking about the benefits of obtaining resident status in Diia.City, referring to the numerous advantages for companies operating in this legal regime. From preferential taxation to enhanced legal protection, residency in Diia.City provides significant advantages for IT companies. Let's take a deeper look at why it is beneficial for your IT company to receive this status.
**1. Preferential taxation:**
One of the most attractive aspects of Diia.City residency is the preferential taxation. Resident companies enjoy a reduced personal income tax rate of 5% compared to the standard rate of 18%. In addition, the single social contribution (SSC) is calculated based on the minimum wage, which leads to a reduction in the tax burden on employees. Gig - specialists have the opportunity to get a reservation, which is provided by law for residents of Diia.City.
**2. Gig contracts:**
Residents of Diia.City have the opportunity to conclude gig contracts, which provides flexibility in attracting specialists for specific projects. Payroll tax for gig contracts is advantageous at 5% plus 1.5% military levy, offering a cost-effective workforce management solution.
**3. Capital withdrawal tax rate:**
Diia.City resident companies pay capital withdrawal tax at the rate of 9%, which provides an efficient tax mechanism for accessing company funds. This allows for smoother management of cash flows and investment opportunities.
**4. Exemption from dividend tax:**
Individuals who receive dividends from a Diia.City resident company are exempt from taxation, provided that such payments are made no more than twice a year. This encourages investment and encourages shareholders to reinvest profits in the company.
**5. Protection against unreasonable checks:**
Diia.City resident companies benefit from special guarantees of protection against unfounded inspections, providing peace of mind and reducing the regulatory burden. This provides a favorable business environment for innovation and growth.
**Obtaining Diia.City resident status:**
The process of obtaining resident status in Diia.City involves submitting an application to the Ministry of Digital Transformation, which is considered within a certain period. After approval (according to the principle of "tacit consent", the company receives resident status and enters the city.diia.gov.ua register.
**Why seek expert help:**
Navigating the complexities of obtaining Diia.City resident status can be difficult, especially for companies unfamiliar with the process. Enlisting the help of legal experts, such as those available on the Consultant legal marketplace, greatly simplifies the application process and ensures compliance. This not only saves valuable time, but also opens up new opportunities for business expansion and innovation.
Conclusion: Having received Diia.City resident status, IT companies receive numerous benefits, ranging from tax benefits to legal protection. Taking advantage of these opportunities and turning to experts as necessary, IT companies can succeed in the dynamic business environment of Ukraine.
