Diya.City: Accounting Services for IT Companies and Startups

Diya.City is not just a tax regime, but effectively a new model for running an IT business in Ukraine. It allows companies to operate transparently, pay less in taxes, and at the same time present a clear picture to investors, partners, and banks. That is why more and more companies are switching to this regime or building their businesses around it from the start.

But along with the advantages come challenges. Accounting in Diya.City is no longer just about “filing a report and calculating payroll.” Here, it’s important to understand the logic behind the capital withdrawal tax, structure payments correctly, account for work with non-residents, and avoid creating situations that the tax authorities might interpret as capital withdrawal. That’s why most companies choose not just an accountant, but a team with specific experience in IT and Diya.City.

What is Diya.City and why is everyone talking about it?

To put it simply, without complex legal jargon, Diya.City is a special regime for IT companies that combines favorable taxation with more modern rules for working with a team. Businesses gain the ability to choose between income tax and capital withdrawal tax, as well as work with specialists through flexible models, such as GIG contracts.

This is especially important for companies planning to grow, attract investment, or work with foreign clients. When the business structure is clear and the accounting is transparent, it significantly simplifies any negotiations and audits. That is why Diya.City is often called the Ukrainian alternative to more mature jurisdictions.

Why Accounting in Diya.City Is a Specialized Field

In practice, the biggest mistake is to think that Diya.City is just “another tax regime.” In reality, the tax authority’s approach here is different: it looks not only at documents but also at the economic substance of transactions.

For example, the same payment may not be subject to taxation or, conversely, may become subject to VAT—depending on who it is paid to and how it is documented. The same applies to working with non-residents, related parties, or even internal corporate decisions. If these nuances are not taken into account, the company may face an unexpected tax burden where it was not planned.

That is why accounting support at Diya.City is always about analysis, not just bookkeeping. Here, it is important not only to correctly record a transaction but also to understand its consequences in advance.

How we support companies in Diya.City

We work with IT companies comprehensively, starting from the moment they enter Diya.City and ending with daily accounting support. At the outset, we help properly structure the business so that it meets the regime’s requirements and does not create problems in the future.

Next, we take over accounting: we monitor all financial transactions, payment accruals, work with GIG contracts, foreign economic agreements, and foreign currency receipts. At the same time, we prepare tax reports and support the annual reports of Diya.City residents, including interaction with auditors.

But the key value lies not in the accounting itself, but in risk management. Before major transactions, we analyze them from a tax perspective to ensure the business does not face unexpected additional tax assessments.

Tax nuances you need to know

In Diya.City, many situations appear “ordinary” but have different tax implications.

For example, contributions to additional capital or internal transfers may appear to be technical transactions, but if they actually result in the transfer of resources to related parties, this may be considered a taxable event. In such cases, it is critically important to properly document the transactions and understand the tax authorities’ logic.

Fines, penalties, and liquidated damages are a separate matter. Here, it is not the fact of the fine itself that matters, but to whom it is paid. If certain categories of counterparties are involved, such a payment may fall under the Tax Code. Conversely, in ordinary situations, no tax liability may arise.

There are also many questions regarding aid to the Armed Forces of Ukraine. Companies want to support the army but at the same time avoid creating tax risks. Here, documentary evidence and the correct structure for transferring assets are of key importance.

Diya.City for Startups: How Not to Make a Mistake at the Start

For startups, Diya.City is an opportunity to build a business correctly from the very beginning. But at the same time, it is a risk zone if key requirements are not taken into account at the start.

Most often, problems arise not because of the complexity of the legislation, but because of minor mistakes: an incorrect payment model, non-compliance with criteria, or incorrect reporting. As a result, the company may lose its status or incur additional tax liabilities.

That is why, at the early stage, it is important not just to “join” Diya.City, but to immediately set up the system so that it runs smoothly in the future.

Why choose BuhalteriO

We work with IT businesses as a system, not just doing the bookkeeping. We understand how product companies, SaaS models, startups, and service teams operate. We know what a business looks like through an investor’s eyes and what issues may arise during an audit.

That’s why our goal isn’t just to file reports, but to ensure you have no issues with the tax authorities, audits, or partners.

Consultation and Pricing

The cost of accounting services at Diya.City always depends on the specific business—team structure, volume of transactions, presence of non-residents, and model complexity.

That’s why the best option is to start with a consultation. We’ll analyze your situation, highlight potential risks, and propose a workflow that’s optimal for you.

👉 Submit a request—and we’ll help you set up your accounting at Diya.City without chaos, errors, or unnecessary taxes.