Mandatory reporting for Diia City residents was resumed

Key aspects:

Companies that acquired the status of Diia City residents before February 17, 2024:

• are required to submit annual reports and independent audit conclusions for 2023 by 01.06.2024;
• shall not submit initial compliance reports and independent audit conclusions to them;
• will not lose the status of "Diia City resident" due to non-compliance with the criteria, such as the number of specialists, average salary or gig remuneration, and the amount of the share of qualified income based on the results of the 2023 reporting;
• will be obliged to ensure compliance with the criteria starting March 01, 2024 in order to maintain the status of "Diia City resident" in 2025 based on the results of reporting for 2024, in particular:
  • the minimum number of staff under an employment contract and/or gig contract shall be 9 people and more;
  • the amount of the average monthly salary or gig remuneration is not less than the equivalent of EUR 1200 or bigger;
  • the share of qualified income (from IT activities) shall not be less than 90% of the total income.

We would like to remind you that the Article 13 of the Diia City Law provides for the submission of two types of compliance reports:

• initial report (with data for three full calendar months following the month in which the Diia City resident status was acquired) no later than the last day of the sixth calendar month following the calendar month in which the Diia City resident status was acquired;
• annual report (with data for the period from January 1 to December 31 of the previous calendar year), submitted no later than June 1 of the year following the reporting year.

In addition to initial and annual reports, Diia City residents must submit audit conclusions prepared by an independent auditing company.

The Mazars team has extensive experience of assisting companies in obtaining the status of Diia City residents, as well as accounting, tax and legal support for Diia City residents, including in the preparation of reports.

If you have any questions, please do not hesitate to contact us.

Source: Resolution of the Cabinet of Ministers of Ukraine "Some issues of resumption of reporting by Diia City residents" dated February 13, 2024, No. 163. Effective from 17.02.2022.
Explanation of the Diia City Office "Resumption of reporting by residents"

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