Business news from Ukraine

The Ministry of Digital Economy adjusted the list of countries whose entrepreneurs will become the first e-residents in Ukraine: it includes Slovenia, India, Pakistan and Thailand, Deputy Prime Minister – head of the Ministry of Digital Economy Mikhail Fedorov said on Twitter.
“Our team continues to work on the e-residency program. This will allow foreigners to remotely conduct business and pay taxes in Ukraine. The first group of countries has been approved: Slovenia, India, Pakistan and Thailand. That’s not all, while we are finalizing the legal framework,” Fedorov wrote on Twitter on Monday.
Earlier it was reported that five countries of IT-service providers for outsourcing – India, Bangladesh, Pakistan, China and the Philippines – have been tentatively identified as the target audience of the Ukrainian “e-residency”.
Deputy Minister of Digital Transformation on IT Alexander Bornyakov noted on his Facebook page that after the full launch of the program the citizens of these four countries can register as entrepreneurs in Ukraine and pay taxes to the state budget in the “online” mode. Also, remotely manage their businesses and bank accounts. He noted that with the expansion of the program the list of countries will be added.
“The program should fully run this year – now the legal framework is being finalized and the information system is being tested. Step by step we turn Ukraine into a hub for innovative entrepreneurs from all over the world,” Boryakov wrote.
In the Ministry of Finance point out that now the information system e-resident is being tested.
The Ministry also reminded that e-residency of Ukraine will not be available for citizens of Russia, Belarus and the countries included in the “gray” or “black” list of FATF.
In addition, e-residents will not be able to provide services to Ukrainian citizens, that is, will work exclusively with other foreigners.
It was also reported that the law with the amendments to the Tax Code and several other laws on peculiarities of taxation of business activities of e-residents – e-resident – came into force on April 1. When working as an “e-resident” will pay tax of 5% of income within the limit of FLP Group 3, and above the limit – 15%, but only on foreign contracts for the export of services.
As of April 1, National Bank of Ukraine gave e-residents the right to open current bank accounts, implementing the norm of the law of October 6, 2022 “On peculiarities of taxation of business activities of e-residents”.
The Ministry of Finance has been working on the “e-residency” project since 2019. “E-resident” is a special status of a foreign citizen in Ukraine, which opens him access to information and advisory services, simplifies procedures for obtaining administrative services and entering into civil law agreements. It also allows him to establish a business in Ukraine remotely.
Earlier, Boryakov said that at the first stage of the project it will be possible to register only in the form of sole proprietorship, but in the future there will be opportunities to register legal entities in the form of a limited liability company (LLC).