The corresponding bill was passed by the Verkhovna Rada on July 13, with 286 members of parliament voting in favor of changes regarding the taxation of business activities of electronic residents.
E-residency creates conditions under which foreign citizens will be able to conduct business activities in Ukraine under more favorable terms. The bill is primarily aimed at representatives of creative and IT industries.
From now on, E-residents are granted the rights of individual entrepreneurs, which includes a simplified system of taxation, reporting, and payment of a single tax for the third group without VAT, which is 5% of total income. This means the tax rate for foreigners will be the same as for Ukrainian individual entrepreneurs (without employees)
E-residency provides the following opportunities:
- Foreigners will be able to remotely register as individual entrepreneurs through the “Diia” government services portal;
- Open a bank account in Ukraine online;
- Conduct business activities under Ukrainian jurisdiction;
- Receive electronic trust services;
It is also proposed to allow individual entrepreneurs registered as E-residents to conduct transactions exclusively in non-cash form.
It is projected that this bill will create favorable conditions for attracting foreign investment and, through taxes, will contribute to the country’s budget, with experts estimating at least $1,500,000 per year
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