In a few days, e-residency will appear in Ukraine: what it is
25 September 2024 15:45
The Ministry of Digital Transformation of Ukraine is planning to launch the E-Resident project in the near future, which will allow foreigners to open accounts and do business in Ukraine. This was announced by Mykhailo Fedorov, Vice Prime Minister for Innovation, Education, Science and Technology Development and Minister of Digital Transformation, reports "Komersant Ukrainian" with reference to Interfax-Ukraine.
“In a few days, we will launch e-residency, like in Estonia, but with better conditions. We are entering another level of competition with other countries, and we will present it in the IT arena,”
– fedorov said.
The Minister added that it is not just a service, but the creation of a separate ecosystem. It will allow entrepreneurs from different countries not only to start an online business in Ukraine but also to pay taxes.
The minister also spoke about other initiatives the government is working on, including the organisation of a pilot project on static internet and the introduction of 5G in Ukraine.
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What is e-residency?
Earlier it was reported that the government had approved a mechanism for obtaining e-residency in Ukraine, a draft of which had been developed by the Ministry of Digital Transformation since 2019. E-residency is a special status for foreign nationals in Ukraine that provides access to information and advisory services, simplifies the receipt of administrative services and the conclusion of civil law transactions. In addition, the status allows foreigners to set up a business in Ukraine remotely.
Initially, entrepreneurs will only be able to register as individual entrepreneurs. However, in the future, it will be possible to register legal entities in the form of a limited liability company (LLC).
The Ministry of Digital Transformation has clarified the list of countries whose entrepreneurs will become the first e-residents. The list includes Slovenia, India, Pakistan and Thailand.
On 1 April 2023, a law amending the Tax Code and several other laws regulating the taxation of business activities of e-residents came into force. While operating in Ukraine, e-residents will pay a tax of 5% of their income within the limit for individual entrepreneurs of the 3rd group, and 15% above the limit, but only on contracts related to the export of services.
Also, starting from 1 April, the National Bank of Ukraine allowed e-residents to open current accounts in Ukrainian banks, which was implemented in accordance with the Law of 6 October 2022 “On Peculiarities of Taxation of Business Activities of Electronic Residents”.
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