A law on E-residency came into force in Ukraine, allowing foreign IT specialists to become entrepreneurs in Ukraine and pay taxes online

The Ministry of Digital Development notes that after the approval of all the necessary regulatory framework, foreign IT specialists will be able to become entrepreneurs in Ukraine and pay taxes to the state budget – and all this online.

The authorities are currently testing a service that will allow foreigners to apply for e-resident status.

After testing is completed, it is planned to attract about 1000 e-residents. It is expected that the last permission from the NBU will be granted, which will help to launch the project in full. We are talking about the possibility for e-residents to transfer funds to their own account abroad in foreign currency.

It is expected that the project will bring additional profit for the budget and will help popularize Ukraine as a global IT brand and increase its position in international rankings, in particular Doing Business.

The launch of the e-residency project will allow foreigners to become entrepreneurs in Ukraine in a few clicks; manage your business remotely using modern technologies, open bank accounts and manage them; sign documents with an electronic signature; pay taxes on preferential terms.

Given the aforementioned E-residency in Ukraine, a very attractive business tool for IT entrepreneurs.

By law, entrepreneurs with income in Ukraine cannot become e-residents. Citizens of Russia and countries included in the FATF gray or black list also cannot become e-residents.

Also, cannot be electronic residents (e-residents):

a) citizens of Ukraine;

b) foreigners who have the right to permanent residence in Ukraine or who are tax residents of Ukraine;

c) stateless persons;

d) persons receiving income with a source of origin from Ukraine for goods, works, services (except for passive income);

ґ) persons who are citizens (subjects), residents or persons whose place of permanent residence (location, registration) are states (jurisdictions) not included in the List of states whose citizens or residents can obtain the status of an electronic resident (e-resident).

As reported, e-residency is a special status of a foreign citizen in Ukraine. It provides a foreigner or stateless person who has reached the age of eighteen with the opportunity to receive qualified electronic services, access to information and consulting services, simplifies the procedures for obtaining administrative services and concluding civil law agreements, and also allows you to remotely open accounts and conduct business in Ukraine.

In March, the NBU granted e-residents the right to open current bank accounts.

It should be noted that, despite the military aggression from the Russian Federation, Ukraine remains among the world leaders in the field of IT technologies, and no EU tax system can compete with unique tax conditions for the implementation of activities.

So, for example, under the simplified taxation system, an entrepreneur can choose a tax rate of 5% of profits and pay a single social contribution in the amount of 22% of the minimum wage, which is only UAH 1,474 (about $40). For example, in Poland, an IT specialist on a simplified system needs to pay 12% of turnover + 2 types of social contributions, which will be at least about 1000 zlotys (about 240 US dollars).

This advantage is expected to play an important role in attracting businesses to Ukraine.

If you work in the IT field and want to become an E-resident of Ukraine, then contact us for help.

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