Audit for Diia City residents
Diia City is Ukraine’s special legal and tax regime for technology companies. Residency is confirmed every year: the company shows the authorised body that it still meets the criteria set by law. Some figures cannot just be declared: an independent auditor confirms them. We check the income structure, the average remuneration of specialists, the headcount and the annual financial statements. The report comes in English and Ukrainian.
A Diia City resident confirms every year that it still meets the residency criteria, and an independent auditor verifies the key figures: the share of qualified income, the average remuneration of specialists, the average number of engaged specialists and the annual financial statements. The auditor’s report is filed with the annual resident reporting. MK Audit works since 2000, auditors register No. 4624, Kyiv.
Why a resident needs an independent auditor
Residency is not granted for good. The company periodically shows that it still fits the criteria set by law, and an auditor confirms that its figures match the records.
Qualified income, average remuneration and average headcount follow separate rules. They are not balance sheet lines: you assemble them from contracts, accruals and revenue analytics.
If a figure moves outside the limits, the status and its tax treatment are at risk. A gap found after a quarter costs less than one found during a review.
What the auditor checks
We break revenue down by line of business and see which receipts are treated as qualified income. We check whether contracts, acceptance acts and source documents support that treatment.
A gig contract exists only inside Diia City and sits between employment and a services contract. We read the subject, the remuneration and the proof of work, and check that practice matches the text.
We check orders, the staffing table, timesheets and pay terms. HR records feed both the headcount and the remuneration figure, so we treat them as in an HR records audit.
We check who was included, for which period and which payments were counted. Differences appear on the border between employment and gig relations, and on accruals left out of the base.
We look at how the average number of engaged specialists is counted: for which period, who is included, how people who joined or left mid month are treated.
We check the chosen tax treatment, withholdings from payments to specialists, the reporting and the deadlines. If needed we extend this into a separate tax audit.
Typical mistakes of residents
The company runs several lines of business but books all revenue as qualified income. Sorting it out starts with the contracts and ends with a rebuild of the analytics.
Income and costs sit in one pot, so the figures are counted by hand in spreadsheets. Such a calculation is hard to support with documents and slow to repeat.
The contract is signed, but no acceptance acts are drawn up and the scope of work is recorded nowhere. A weak point for the status and for any review.
The calculation leaves out people who belong in it, or counts the wrong payments. The mistake looks technical, yet it moves the figure checked every year.
The figure is taken at the end of the period and ignores specialists joining and leaving inside it. The result differs from a correct calculation.
Documents are collected in a rush while the accountant closes the year. Starting early leaves time to fix whatever comes up.
Four steps from request to report
We find out from which date the status applies, which lines of business you run, and who works under employment or gig contracts. We reply within 1 business day.
We send the list of documents and accesses, agree the deadlines and contact people, and name the places where questions usually arise.
We analyse income, contracts, accruals, the calculations and the financial statements. Debatable points go to your accountants as we go, not at the end.
You receive the auditor’s report in Ukrainian and, if needed, in English, plus a list of what to correct for the next period.
Most common questions
Does a Diia City resident need an independent audit
Yes. The company’s own calculations are not enough: an independent auditor verifies the key figures and the annual financial statements, and the report goes in with the resident reporting.
Who may carry out such a review
An audit entity listed in the Ukrainian register of auditors. MK Audit works since 2000, auditors register No. 4624, company code 39419346, Kyiv, member of DFK International with firms in more than 90 countries.
Is this the same as a statutory audit
No, the residency figures have their own subject. A company may also fall under a statutory audit of the financial statements, so we first check which statutory audit criteria apply to you.
When is the best time to start
Best before the year end, while the revenue analytics and HR documents can still be corrected. If the year is closed, we work with what exists and note what to change next year.
What if the figures are close to the limit
We show the calculation and where it may move once the data is clarified. The decision belongs to the company, our task is to give an honest picture first.
Do you work remotely and is the report in English
Yes, we work remotely across Ukraine and accept documents electronically. Founders, investors and group auditors abroad read the English version of the report. Other services: audit services.
How much does it cost
The fee depends on the number of lines of business, the volume of transactions, the number of specialists and the state of the records. A proposal follows after we review the assignment.
Let us scope your assignment
Describe the situation, we reply within 1 business day.