First year action.City: The test of war was successful

Ernst & Young receives a large number of requests for transformation of IT companies to obtain a residence on modeling a possible future activity and tax policy. They ask for consultations on the rules of the regime, the development of legal documents, preparation and verification of reporting, verification of compliance with the criteria set for the residents. Earlier, most companies attracted IT professionals as FOPs.

This business model was opaque, incomprehensible to foreign investors and risky. Repeatedly, during Due Diligence Procedures of Ukrainian IT companies, we have noted the risks of disputes with the controlling bodies, difficulties in structuring the company's relationship with IT professionals, lack of staff maintenance mechanisms, risks related to intellectual property rights to the developed product, complexity. transactions for the purchase of IT business investors. The action.

City resolves these issues with the introduction of a special tax regime and alternative models of involvement of specialists. Individual income tax - 5%, military levy - 1. 5% and ESA - 22% of one minimum wage - that is, compared to the simplified tax system by only 1. 5% of military fee. Corporate taxation can occur in two alternative options: income tax on a general basis in 18% or income tax on special terms (actually tax on distributed profit) at the rate of 9%.

On the other hand, a resident can involve experts in the staff either as a gig specialist or as FOPs. The regime has introduced the concept of gig contract, which is a kind of civil contract and is concluded between the resident. Action. City and physical person. At the legislative level, mechanisms for the maintenance and encouragement of specialists are enshrined through the conclusion of contracts for non -disclosure and retention of competitive actions.

The mechanisms that were laid down from the outset made the action. City naturally hardy during the war: the electronic form of communication with the regulator, regulated remote mode of work, signing documents with personnel in electronic form, etc. For its part, the Mincrifra regularly explains, quickly examines the appeal and constantly develops new space opportunities. And in the context of martial law, the actions of. City have the status of critical and can book servicemen.

According to the results of each reporting year, residents will comply with annual compliance reports and will undergo independent audits. Preparing and obtaining an independent conclusion can be a challenge. Tax audit will also require effort, especially for residents who have chosen taxation of "distributed profit", which is unusual for both taxpayers and companies. Companies should have a "self -test" and verify the taxpayers' visit.

At the same time, there is a need to clarify the activities that are acceptable to the resident. First of all, it concerns consultants on informatization, e-commerce online platforms, entrepreneurs engaged in configuration and repair. It is not fully understood how to take into account part-time people when calculating the average number of personnel and the size of the average monthly remuneration, how to pay hospital and pension deductions, which for workers the action of.