Accounting for an IT company in Ukraine covers bookkeeping, contractor and staff payments, foreign currency income and reporting, set up around how the team is engaged: FOP contractors, employees or Diia City. Key Solutions does this under contract, including Diia City compliance reports.
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In short
- When you need it: a new IT company, a move into Diia City, a growing pool of FOP contractors, income from foreign clients or a departing in-house accountant.
- What you get: bookkeeping under contract, tax and payout calculations, filed reports, and monitoring of Diia City criteria and FOP income limits.
- Start: in our experience, once the review is done and the documents are complete, we take over from the next reporting month.
- Cost: agreed individually and depends on the team model, the number of people, currency transactions and Diia City status.
- First step: book a consultation and tell us how your team is engaged, its size and the currency of your income.
Why IT accounting in Ukraine is different
Three decisions shape the accounts of a Ukrainian IT company: how the people are engaged (FOP contractors, employees or gig contracts), whether the company operates under the Diia City regime, and where client payments arrive. They drive the tax rates, the reports and the risk of additional tax assessments. An IT company has almost no inventory, but it does have contractors outside the payroll, foreign currency income and intellectual property.
The law allows a company to have its books kept under contract by a firm working in accounting or audit (Art. 8(4) of Law No. 996-XIV); the financial statements are then signed by the director and the head of that firm (Art. 11(1)).
Three ways to engage an IT team
| Model | Tax on the individual's income | Main risk |
|---|---|---|
| FOP contractors, group 3 | Single tax of 3% or 5% (Tax Code, para. 293.3), military levy 1% | Reclassification as employment, exceeding the income limit |
| Employees outside Diia City | Personal income tax 18% (para. 167.1), military levy 5% | High payroll tax burden |
| Diia City: staff and gig specialists | Personal income tax 5% (subpara. 170.14-1.2), military levy 5% | Loss of status if the criteria are missed |
The group 3 income limit is 1,167 minimum wages a year (Tax Code, subpara. 3 of para. 291.4). With the 2026 minimum wage of UAH 8,647 (Art. 8 of Law No. 4695-IX), that is UAH 10,091,049.
What IT accounting services include
- bookkeeping from source documents, bank and foreign currency accounts, exchange differences;
- FOP contractor settlements: contracts, acts describing the work, income limit and activity code checks;
- payroll and gig contracts, personal income tax, military levy and social security contributions (ЄСВ);
- corporate income tax on general or special terms, returns and financial statements;
- monthly Diia City criteria checks and compliance reports;
- answers to bank queries on currency transactions and to tax authority requests.
How we work
- Review of model and books We read the contracts with clients and contractors, recent filings and balances.
- Contract and scope We agree the areas we cover, the document calendar and each side's responsibility.
- Accounting policy for IT We set out revenue recognition, intangible assets and paperwork with contractors.
- Monthly books and payouts We record transactions, calculate salaries and fees and match FOP acts.
- Filings and payments on time We file returns and send you the amounts and payment dates.
- Annual accounts, Diia City report We prepare the financial statements and the compliance report and pass the data to the auditor.
Timelines
In our experience, with complete documents we take over from the next reporting month after the review. Gaps in earlier periods are restored first, which moves the start back.
What affects the cost
- the team model: FOP contractors, employees, gig contracts or a mix;
- the number of people and documents per month;
- foreign currency accounts and payments from abroad;
- Diia City status and compliance reporting;
- transactions with related foreign companies and transfer pricing;
- the state of the books at the start.
The fee is agreed individually: we quote a monthly amount after the review and fix it in the contract.
What we need from you
- Charter, register extract, accounting policy order and the Diia City status decision, if any.
- Contracts with clients, FOP contractors and gig specialists.
- Bank statements for hryvnia and foreign currency accounts.
- The accounting database and recent filings.
- A contact person who sends acts and invoices by the agreed date each month.
Result
- Reports filed on time, with tax authority receipts.
- A monthly list of taxes and payouts with amounts and dates.
- Monthly Diia City criteria calculations and compliance reports.
- A register of FOP contractors with income limit tracking.
- Signed annual financial statements and a document pack for the auditor.
Find out the cost
Tell us how your team is engaged, how many people work with you and where your income comes from. We will reply with the scope and the fee.
Diia City: criteria, rates and compliance reports
Diia City is a special legal regime with measurable criteria. A resident is a Ukrainian company that carries out listed IT activities, pays its employees and gig specialists an average of at least the equivalent of EUR 1,200 a month, has at least nine employees and gig specialists on average, and earns at least 90% of its total income as qualifying income (Art. 5(1) of Law No. 1667-IX). Companies set up no earlier than 24 months before applying may hold the status for a limited period without meeting every criterion (Art. 5(3)).
Specialists' pay is taxed at 5% up to the equivalent of EUR 240,000 a year (Tax Code, subparas. 170.14-1.2, 170.14-1.3). In a month when the pay or headcount criterion is missed, the resident charges 18% instead and pays it from its own funds (subpara. 170.14-1.5).
The initial compliance report is due by the last day of the sixth month after the status is obtained, and the annual report by 1 June each year, both with an independent auditor's conclusion (Art. 13(2), (3)). The conclusion must come from an audit entity authorised to perform statutory audits (Art. 13(5)). For our clients it is issued by a partner audit firm listed in the relevant section of the Register. Key Solutions keeps the books, calculates the criteria monthly and prepares the report.
Foreign clients, VAT and currency income
For software development and testing, data processing, IT consulting and the supply of intellectual property rights, the place of supply is where the customer is registered (Tax Code, para. 186.3). Services to a customer outside Ukraine are therefore outside the scope of Ukrainian VAT. VAT registration becomes mandatory once taxable supplies exceed UAH 1,000,000 over 12 months, except for single tax payers of groups 1–3 (para. 181.1). Only taxable supplies count towards this threshold.
Banks regularly ask IT companies for contracts, invoices and acts behind foreign payments, and we prepare that pack in advance. Contracts with foreign clients are covered by our non-resident transactions service.
Growing into a medium-sized company: statutory audit
Medium-sized and large companies that are not securities issuers must publish their annual financial statements with the audit report by 1 June (Art. 14(3) of Law No. 996-XIV). When an IT company reaches that size, we organise the statutory audit end to end: a partner audit firm listed in the relevant section of the Register performs the audit and signs the report, and Key Solutions prepares the books and statements and supports the company until publication. The service is described on our mandatory audit of financial statements page, and who needs one is explained in mandatory audit in Ukraine.
Legal framework
Rules the work relies on
- Arts. 5, 8, 11 and 14 of Law No. 996-XIV — accounting under contract, signing and publishing financial statements.
- Arts. 5, 9 and 13 of Law No. 1667-IX — Diia City criteria, loss of status and compliance reports.
- Tax Code, paras. 136.8 and 170.14-1 — special corporate tax and personal income tax for Diia City residents.
- Tax Code, paras. 181.1, 186.3, 291.4 and 293.3 — VAT registration, place of supply of IT services, single tax limits and rates.
Risks and why to hand the work to a team under contract
Typical IT mistakes cost more than the bookkeeping: a contractor passes the group 3 limit and the excess is taxed at 15% (Tax Code, para. 293.4); a month with eight people in Diia City moves income tax to 18% at the company's expense; a late compliance report more than 20 working days overdue can cost the status (Art. 9(1)(4) of Law No. 1667-IX). Failing to file a controlled transactions report costs 300 subsistence minimums for an able-bodied person (para. 120.3). The firm is liable to the client under the contract, and its head signs the financial statements with your director. Legal work on gig contracts and Diia City status is handled by legal.ua, crypto payments by crystal.tax.
Why Key Solutions
- Turnkey, with no extra hassle
- We take the whole task: documents, calculations, reporting and correspondence with the State Tax Service. You make the decisions, provide source documents and sign; we do the rest and contact you only when it matters.
- We take on the tax office
- Information requests, blocked tax invoices, inspection reports: we prepare explanations, rework documents and appeal until the issue is closed. Where the law is in dispute, we work together with the group's lawyers.
- We see it through
- Your case stays on track: the specialist running it remains with you, even if an inspection or audit drags on for months. Statutory audits are performed, and the report signed, by a partner audit firm entitled to perform them; we handle preparation and support through publication, so you deal with one team from start to finish.
- Boutique-level involvement
- A senior specialist runs your project personally (see the Our employees page), backed by 14 years of Innova group practice in 50+ countries. Non-standard tasks are our field: where you hear “it can’t be done”, we look for a lawful way, and group companies cover the rest: legal.ua for legal matters, crystal.tax for crypto-asset taxation.
- Your affairs stay yours
- Information about your company, turnover, payroll and counterparties reaches neither competitors nor third parties. We disclose only what the law or a procedure requires, and the contract says so.
- Faster and right the first time
- Full involvement: your specialist learns your books, contracts and business, so documents and reports are ready on time with no rework. The group's 14 years of experience let us get right the first time what takes some firms three attempts.
Frequently asked questions
How much does accounting for an IT company cost in Ukraine?
The fee is agreed individually and depends on the team model, the number of people and documents, currency transactions and Diia City status. We quote a monthly amount after reviewing the books and fix it in the contract.
What taxes does an IT company pay in Ukraine?
Outside Diia City: 18% corporate income tax (Tax Code, para. 136.1) or the group 3 single tax, plus income tax and military levy withheld from salaries. A Diia City resident on special terms pays 9% on a special tax base (para. 136.8) and withholds 5% from specialists' pay.
Is Diia City better than working with FOP contractors?
It depends on headcount and pay. Diia City requires at least nine employees and gig specialists and average pay of at least the equivalent of EUR 1,200 a month, which small teams often do not meet. When they do, specialists' income is taxed at 5% up to EUR 240,000 a year.
Does an IT company need an accountant if everyone works as FOP?
Yes. A Ukrainian company keeps accounts from registration to liquidation and prepares financial statements, whatever the team model. An accounting firm under contract can replace an in-house accountant (Art. 8(4) of Law No. 996-XIV).
Does an IT company charge VAT on services to foreign clients?
Usually no. For software development and testing, the place of supply is where the customer is registered, so services to a foreign customer fall outside Ukrainian VAT (Tax Code, para. 186.3). The VAT exemption for software supplies ended on 1 January 2023.
Who issues the independent conclusion for a Diia City compliance report?
The law requires an audit entity authorised to perform statutory audits of financial statements (Art. 13(5) of Law No. 1667-IX). For our clients a partner audit firm from the relevant section of the Register issues it, while Key Solutions prepares the books, the criteria calculations and the report itself.
Related services
Let's discuss your IT company's accounts
Tell us how your team is engaged, how many people you have, whether you are a Diia City resident and which countries your clients are in. We will reply with the scope, the fee and a start date.
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