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03 Oct. 2022


Ukraine will create e-residency: which gives foreigners a special status (updated)



Ukraine will create e-residency: which gives foreigners a special status (updated)

Purchase insurance for entry into Ukraine
Purchase insurance for entry into Ukraine

The Committee of the Verkhovna Rada of Ukraine on tax and customs policy recommended the parliament adopt a draft law, which creates an e-residency in Ukraine. This was reported in the Ministry of Statistics.

Find out all about the rules for obtaining a work visa, its types and the documents required here.

What is e-residency?

This is a special status, which allows foreigners to open their businesses and pay taxes without a physical presence in the country.

What will foreigners be able to do after the adoption of the draft law?

• Register the sole proprietorship status of 3 groups without a physical presence in Ukraine;

• pay a tax of 5% of the income;

• open a bank account.

Taxation and reporting for e-residents will be automated.

Which foreigners will not be able to get an e-residency?

The author of the draft law, Yaroslav Zheleznyak, informed that not all foreigners will be able to acquire e-residency. Citizens of Russia, persons from the FATF "blacklist" and those who have income in Ukraine (except passive) couldn’t get a special status.

The Ministry of Digital Transformation notes that by adopting this law, Ukraine will show itself as a country with a powerful IT brand, raise investments in the state budget and boost the economy.

President Volodymyr Zelenskyy signed Law 5270 on "electronic residency". People's deputy from the "Voice" faction, first deputy head of the Committee on Finance, Tax and Customs Policy Yaroslav Zheleznyak announced this.

Now from April 1, 2023 (date of entry into force) Ukraine will introduce e-residency for everyone who wants to fill the Ukrainian budget).

How will e-residency work?

1. The specialist registers with Diia and passes a financial and security check

2. If everything is fine, he becomes an electronic resident - in fact, an electronic payer of the single tax on the 3rd group without VAT and receives an EDS

3. Opens a bank account remotely. And it is the bank that will be the tax agent for the e-Resident

4. Works and pays tax - 5% of income within the limits of the FOP of the 3rd group. More than the limit - 15%.

But only external contracts with the export of services.

5. All documents are in electronic form, all correspondence with the DPS is online, all payments are non-cash.

The list of countries whose citizens are allowed to become e-residents of Ukraine is determined by the government.

Ukraine expects the registration of 1,000 e-residents in the first year of the law.