Ukraine has enacted a new law allowing foreigners to conduct business and pay taxes online through e-residency. The project will be tested for government agencies, and upon completion of all necessary regulatory frameworks, foreign IT specialists can become entrepreneurs in Ukraine and pay taxes online.
Legal Framework and Testing
The Ministry of Digital Transformation, along with other government agencies, is currently working on the legal framework to launch the e-residency project. The project aims to test a service that will allow foreigners to apply for e-residency status. After completion of the testing phase, the project plans to attract approximately 1000 e-residents. Additionally, authorities are waiting for permission from the NBU to fully launch the project. The e-residency project will allow foreigners to become entrepreneurs in Ukraine in a few clicks, manage their business remotely using modern technologies, sign documents with an electronic signature, open and manage bank accounts remotely, and pay taxes on preferential terms.
Benefits of E-Residency
The e-residency project is expected to bring additional revenue to the Ukrainian budget, help popularize Ukraine as a global IT brand, and increase Ukraine’s position in international rankings, including Doing Business. Moreover, the e-residency project is expected to make it easier for foreign entrepreneurs to conduct business in Ukraine, without the need to be physically present in the country.
The law also specifies that e-residents cannot have income in Ukraine, which means that e-residents will provide services exclusively to other foreigners. Furthermore, citizens of Russia and countries on the FATF’s “gray” or “black” list will not be able to become e-residents.
In overall, the e-residency law in Ukraine marks a significant step towards creating a more efficient and modern business environment. The e-residency project will make it easier for foreign entrepreneurs to conduct business in Ukraine and will increase Ukraine’s position in international rankings.
