Ukraine will release ''e-Residency Ukraine'' program 5% tax income...sound interesting!!! Better like Estonia ???

[John Spectre]

How. If you do not have for example house in Ukraine and travelling all time, to Europe, Asia, Latam, how you can be tsx resident of Ukraine? If you do not spend most time in the year in Ukraine?

According to Ukraine tax code, if you have active private entrepreneur (FOP) you are considered UA tax resident without any other checks where you actually spend time.
But you still need to have registered address in Ukraine for both FOP entity and personal address, which could be solved by renting one.

have you seen examples of such thing in the Ukraine lately ?

Each few years something coming. Last was in 2014-2016 with starting war with russia.
The nearest crisis which will for sure come in a few year period repeat it again with some new banks closures.

 

[Marzio]

But you still need to have registered address in Ukraine for both FOP entity and personal address, which could be solved by renting one.

It doesn't have to be an apartment. It could be a mailing address, for example a Regus virtual office.

 

[John Spectre]

It doesn't have to be an apartment. It could be a mailing address, for example a Regus virtual office.

I don't considering marketing materials as proof.
Tax code clearly describe what you need to have.
1. As a registration address for UA tax resident as private person you need to have real apartment address, not a virtual office/mailing address only. Individual person just can't do 'address registration' for the virtual address or commercial property.
2. Place of business for FOP could be any mailing address (in theory).
In practice, if person have registration address already it's a most simple to use same as business address.
Regus office could work for business, but as an extra to the registration address for private person.
It mostly designed to the companies, not for a private entrepreneurs.

 

[Marzio]

I don't considering marketing materials as proof.

Indeed it is marketing but marketing doesn't mean using false claims. A lawyer can't say "an ukrainian mailing address will suffice" and then when you join the program say "it was a joke, you also need to rent an apartment".

Tax code clearly describe what you need to have.

If you know for a fact that the tax code describe what you need can you point exactly where it says so in the tax code?

 

[John Spectre]

then when you join the program say "it was a joke, you also need to rent an apartment".

So you could follow this claim and then learn about the quality of UA lawyers. And probably after it try to sue him and learn about quality of courts in Ukraine. Good luck in general

If you know for a fact that the tax code describe what you need can you point exactly where it says so in the tax code?

Sure. Here you go:

Про затвердження форм заяви про застосування спрощеної системи оподаткування, розрахунку доходу за попередній календарний рік, запиту про отримання витягу з реєстру платників єдиного податку та витягу з реєстру платників єдиного податку

Наказ; Мінфін України від 16.07.2019 № 308

zakon.rada.gov.ua

You here would need to found form https://zakon.rada.gov.ua/laws/file/text/75/f489055n36.doc which is refer to registration to 5% tax level.
You could google translate form if you want as well as law.
#4 at form place of living of person. It can't be virtual/commercial address.
#6 at form place of business of FOP. It could be virtual/commercial address.

Plus you need to fill few more forms and have few more docs, where you will need to prove residential address that can't be commercial one.

 

[Marzio]

You linked a document from 2019, here we are talking about the newest e-residency program.

I don't see anywhere that you have to have a personal residency in Ukraine to get started as a private entrepreneur but hey, for the sake of accuracy i'm going to mail them, wait for the answer and update the discussion.

 

[John Spectre]

You linked a document from 2019, here we are talking about the newest e-residency program.

I linked to up-to-date laws, which is actually in place. And not about fairytale future.
Even if you think that e-residency will apply, it would need to match of current laws(or laws need to be updated).
And if you think that fundamental laws and rules about place of residence, tax codes and bunch of other things will be changed - you are completely wrong.
When e-residence law will be applied, you would be need to follow all bureaucratic laws that present now. It's a how it will work and not how you are imagine for your easy-nomad-life

I don't see anywhere that you have to have a personal residency in Ukraine to get started as a private entrepreneur but hey, for the sake of accuracy i'm going to mail them, wait for the answer and update the discussion.

Easy again.

ГЛАВА 1. СПРОЩЕНА СИСТЕМА ОПОДАТКУВАННЯ, ОБЛІКУ ТА ЗВІТНОСТІ

sfs.gov.ua

Here is direct link from tax authority.
Translate and refer to 291.5.7 which describe who *can't* be private entrepreneur for 5% tax level. And private persons non-residents are clearly displayed here.

I could suggest you are using wrong sources or trying to wishful thinking.

 

[troubled soul]

If I am not wrong , Ukraine is the same country, Mr putin tried to invade.

 

[Marzio]

you are using wrong sources

Oh yes, the main e-residency gov site is surely a wrong source.

Why in the world a government would launch an e-residency program that would require your phisical presence there?

It wouldn't be called e-residency.

 

[Marzio]

Here's my question (LOL i wrote email address instead of mailing address)

Here's the answer they gave me

I can only think that they still have to amend the tax code.

For those that want to follow the development of this program here's the e-residency FB page

 

[John Spectre]

I can only think that they still have to amend the tax code.

For those that want to follow the development of this program here's the e-residency FB page

I prefer to follow laws, which could be operable in disputes, courts, etc. Instead of email from some low level supporter of diyaa who even don't aware of the laws of the own country and just shill wrong information for you.

 

[John Spectre]

Why in the world a government would launch an e-residency program that would require your phisical presence there?

In best way it could be as same as Estonia e-res.

Something like a local ID card who identifies you and give you access for some government institutions, but for other things you need to have to present in Ukraine and have some connection

 

[JustAnotherNomad]

You really do though. Many countries tax office will per default say that you are on a “round trip”, if you are trying to “live” like a nomad and not be tax resident any Where. It doesnt work in practise. You will have to be tax resident SOMEWHERE.

You're not contradicting what I wrote at all: Some countries do it that way, others don't. Some use a hybrid approach where they say "If you can't prove a new tax residency, you will still be tax resident for X years."
How many countries there are in each category, I don't know. It would mean that I know the tax laws of all countries in the world. I don't.
Generalizations don't make sense when it comes to taxes as every country has its own rules.

If you don't believe me, look at the UK rules, since it's such a clear example. They even have a flowchart to help you find out if you are a UK tax resident or not. No, "Are you tax resident somewhere else?" is not one of the questions they ask. They only ask about your ties to the UK:

https://assets.kpmg/content/dam/kpmg/pdf/2016/01/statutory-residence-test-flowchart.pdf

I agree, though, that it's wise to become tax resident somewhere new, as that's what everyone understands ("Oh, so you have moved, ok") - everything else is sort of a grey area and can always lead to trouble ("But where do you live? What's your address?").

 

[orangekangaroo]

More details emerge on Ukraine e-residency.

The government has restricted the list of countries that can apply for e-residency in Ukraine. Only citizens of Pakistan, Thailand, China, Israel, Bangladesh, Germany, Slovakia, India, Belarus, Moldova and Poland can apply.

More info here E-residency for tech specialists to bring Ukraine $1.5 million annually | KyivPost - Ukraine's Global Voice

 

[clemens]

So it is going to be impossible for most parts of EU citizens... great work in Haag.

 

[John Spectre]

More things:
In the proposed law, it's a clearly noted that e-residency does not give you the right to be a tax resident of Ukraine. So it's a pass through entity only.
Shouldn't expect a smart decision from a stupid country.

 

[Marzio]

Shouldn't expect a smart decision from a stupid country.

I agree, this is the stupidest thing ever

 

[backpacker]

Government of Ukraine knows it all:

 

[Dreamy]

Government of Ukraine knows it all:
View attachment 2779

They want to go FROM Ukraine

 

[ilpablo]

Hi guys, since this program doesn't work. Anyone knows if it's possible to become a Ukrainian resident and manage a company abroad and pay only my income tax (which should be around 9%) on dividends? Does the POEM rules apply here?