Publication date: 15.05.2024
Lawyer
"How does a resident of Diia.City register and report on his activities?"
Being a resident of Diia.City, companies receive a number of advantages, including favorable tax rates and special business conditions. However, to residents How does a Diia.City resident report? it is important to understand your reporting obligations to ensure regulatory compliance. Here is a comprehensive guide on how a Diia.City resident can effectively fulfill their reporting obligations.
**Access to online reporting services**
The resident activity process As reported by the Diia.City resident begins with access to the Diia.City online platform. Here's how to get started:
1. **Register and login:** Visit diia.gov.ua and register or login if you already have an account. Make sure you've verified your identity with an electronic signature.
2. **Fill out the application:** Fill out the form and attach the necessary documents in Ukrainian. Sign them with a qualified electronic signature.
3. **Application submission:** The application can be submitted by the head of the enterprise, an authorized person entered in the Unified State Register, or a representative by proxy. Special financial reporting is not required when applying for permits or licenses.
4. **Await Confirmation:** Once submitted, the application will be sent to the Ministry of Digital Technology. Wait for a message confirming the acceptance of the application to your registered email address.
**Further steps in the process of activity**
1. **Review of the application:** The Ministry of Digitization reviews the application and the documents attached to it within 10 working days. The principle of tacit consent applies, that is, if no response is received within this time, the company will automatically receive resident status in Diia.City.
2. **Decision Notification:** The Ministry will notify its decision on the application, whether acceptance, rejection or return without review, to the email address provided.
3. **Decision registration:** All Ministry of Digital decisions are recorded in the Diia.City registry for transparency and accountability.
**Understanding tax rates and requirements**
As a Diia.City resident company, businesses have the opportunity to flexibly choose the desired taxation option:
- **Corporate taxes:** Companies can choose to be taxed on profits under special conditions (tax on withdrawn capital) at the rate of 9% or leave the corporate income tax at the rate of 18%.
- **Labor taxes:** Preferential rates of labor tax apply to residents, including personal income tax 5%, VAT 22% (from the minimum wage), military duty 1.5%.
**Diia.City Residence Requirements**
To become a resident of Diia.City, companies must meet certain criteria defined by the Law of Ukraine. They include:
- Absence of circumstances defined by the Law.
- Receiving at least 90% of the income from the specified activity.
- Provision of an average monthly remuneration of employees and/or gigs of specialists of at least 1,200 euros, at least 9 involved employees and/or gigs of specialists.
**Reporting Obligations**
Diia.City residents must provide both initial and annual compliance reports:
- **Initial report:** submitted within 6 months after receiving Diia.City resident status, contains data for the first 3 months of residency.
- **Annual report:** Submitted no later than June 1 of the year following the reporting year.
**Conclusion**
Reporting as a Diia.City resident is an important aspect of complying with regulatory requirements and taking advantage of residency benefits. By following the steps described and understanding the requirements, businesses can easily navigate the reporting process, ensuring transparency and accountability of their activities in the Diia.City digital ecosystem.
