The legal regime of Diia City offers a maximally simplified legal and tax system for IT companies, providing unlimited opportunities for reinvestment.
The legal regime of Diia City is a highly simplified legal and tax system for IT companies, ensuring unlimited opportunities for reinvestment. However, in order for IT companies to obtain Diia City resident status and enjoy all the benefits offered by the Diia City regime, they must meet the requirements outlined in Article 5 of the Law “On Stimulating the Development of the Digital Economy in Ukraine” (hereinafter referred to as the “Law”). Furthermore, Diia City residents are obliged to ensure continuous and full compliance with all requirements defined by the Law throughout the entire period of residency.
To confirm their compliance with the criteria stipulated by the Law, Diia City residents are required to annually submit a compliance report to the Ministry of Digital Transformation and append an independent auditor’s conclusion to it.
The procedure and deadlines for submission and review are determined by Decree No. 1492, approved by the Government. The Decree itself, available on the Cabinet of Ministers’ website, includes the Report form and instructions for its completion.
The Diia City audit is designed to verify the accuracy of statements made by Diia City residents in their compliance reports.
Following the examination of the resident’s statements in the compliance report, the auditor prepares an independent conclusion – a report providing assurance in accordance with the International Standard on Assurance Engagements (ISAE) 3000.
Decree No. 1492 outlines the procedure for submitting a compliance report and an independent conclusion:
The resident must submit an initial compliance report, compiled based on the results of three full calendar months following the month in which the Diia City resident status was acquired, as well as an annual report. The annual compliance report must be submitted to the authorized body no later than June 1 of the year following the reporting year. Reporting should cover the period from January 1 to December 31 of the previous calendar year. For example, if a company acquired Diia City resident status on April 1, 2023, then in 2024, you report for the period from April 1, 2023, to December 31, 2023.
Law “On Stimulating the Development of the Digital Economy in Ukraine” No. 1667 IX dated July 15, 2021
LOSS OF RESIDENT STATUS
If a Diia City resident fails to submit an annual compliance report for 2023 along with an independent auditor’s conclusion, they lose their status. (Article 9 of Law No. 1667-IX 4) “violation of the deadline for submitting a compliance report and/or independent conclusion by the Diia City resident to the authorized body…”).
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Legal regime Diia City
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Obtaining resident status
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Submission of compliance report
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Attracting new investments and opportunities
Reduction of accounting costs
Avoiding duplication of functions
Prompt response to client requests
Optimization and improvement of the quality of the accounting and tax accounting system
Technical and software at a high level
Large volumes of information processing by our specialists
Constant monitoring of legislative changes
Gained experience at leading enterprises
