Can the Diia City resident switch to the simplified taxation system?

Press service of the State Tax Service of Ukraine, published 12 June 2026 at 15:10 Chapter: News

Legal entity that has lost its Diia City resident status may choose the simplified taxation system and become the single tax payer of the third group.

To do this, the entity must meet the following requirements:

- adhere to the established income restrictions,

- not involve in activities prohibited for the simplified system;

- comply with other conditions stipulated by the Tax Code of Ukraine.

Reminder! Diia City resident is a legal entity that has acquired relevant status and is entered in the Diia City register. Information on the date of acquisition and loss of status is reflected in a special state register.

After acquiring such status, the legal entity is obliged to switch from the simplified system to the general one. Such transition occurs from the first day of month following the quarter in which entity received status of the Diia City resident.

At the same time, after losing this status, legislation allows returning to the simplified taxation system. One of the grounds for losing status of the Diia City resident is submission of the corresponding application by the entity.