E-residence in Ukraine: What to Expect in Next Year

by Olha Povaliaieva
Wednesday, January 12, 2022
E-residence in Ukraine: What to Expect in Next Year

By 31 December 2022, the Ministry of digital transformation of Ukraine expects an increase in the number of e-individual entrepreneurs and $1.5 million in budget revenues

E-residency first appeared in Estonia. As a successful example, a digitization program was launched in Ukraine. E-residents in Ukraine are those foreign persons who do not need to acquire citizenship to start a business in the state. Moreover, some numerical residents of the country do not even need to come to Ukraine to pay taxes or to register business activities officially. The last permit is still valid only in the IT sphere.

The e-residency act is currently being finalized. As the first deputy head of the committee on finance, tax and customs policy of parliament, Yaroslav Zalyzniak stated, the draft aimed at international cooperation will be available at the end of January. At the present time we can mention obvious advantages of -residency in Ukraine:

  • Flat tax — 5% rate for all foreign entrepreneurs;
  • No requirement for compulsory registration. All residents will be registered in the capital operational governmental service office of Ukraine called Diia government services.

If successful, the Ukrainian government expects to receive up to 3.000 e-individual entrepreneurs and $1.5 million in government revenues. We would like to point out that at the moment the project envisages the opening of e-business activities of III group. The profits of such organizations should not exceed $25.500 a year. The activities of e-residents of group 3 are mainly limited to agricultural, pastoral, aquaculture, clothing, paper, chemical, etc.

You will be interested