Law on e-residency

Law Services - Law on e-residency

📌The law on e-residency was adopted

📝 Volodymyr Zelenskyy signed Law No. 2654-IX “On Amendments to the Tax Code of Ukraine and some other legislative acts of Ukraine regarding the peculiarities of taxation of business activities of electronic residents”

✔️From April 1, 2023, this law will enter into force.

💁🏼‍♂️E-resident – a foreigner who has reached the age of 18, is not a tax resident of Ukraine, has received the appropriate qualified electronic trust services and whose information is entered into the E-resident information system.

Such an initiative means that foreigners will be able to easily:
– register in Ukraine as an entrepreneur;
– open and manage bank accounts remotely;
– conduct business online and pay only 5% of income (FOP in the 3rd group);
– use state-of-the-art online business management tools using a laptop or smartphone;
– sign documents with an electronic signature.

💰To open a business in Ukraine, a foreigner must perform the following actions:
1. submit an online application for e-residency status;
2. undergo identification at a foreign diplomatic institution in the country of residence;
3. get RNOKPP and Diya. Signature;
4. register as a 3rd group FOP and open an account in a Ukrainian bank;
5. to conduct business activities.

❌Can not be electronic residents:
1. citizens of Ukraine;
2. foreigners who have the right to permanent residence in Ukraine or are tax residents of Ukraine;
3. stateless persons;
4. persons who receive income with a source of origin from Ukraine for goods, works, services (except passive)
5. persons who are citizens (subjects), residents or persons whose place of permanent residence (residence, registration) are states (jurisdictions) not included in the List of states whose citizens or residents can acquire the status of e-resident (for example, a state, recognized as an aggressor state and/or an occupying state in relation to Ukraine).

▫️In the beginning, IT specialists – programmers, developers of games and other software, network administrators and others – will be able to become e-residents. Gradually, the spheres of activity will expand, and other representatives of the creative economy will be able to conduct business.

▪️It will be possible to become an e-resident after submitting an application on the e-residency portal, which is currently being developed. The application will be checked by the SBU and the Ministry of Internal Affairs. Verification of the person at the consulate is also necessary. After all checks, the foreigner receives a TIN, electronic signature and e-resident status.

▫️It is expected that the introduction of e-residency will have a positive impact on the country’s economy. In particular, the procedure for opening a business will be significantly simplified and this will increase tax revenues for the state budget.