News

J&L Consulting Newsletter – August 18, 2025

·       European Commission Allocates €20 Million for Ukrainian Entrepreneurs: Who Can Receive It

·       An “Online entrepreneur's office” will be created on the “Dіia.Business" platform

·       Changes regarding residents of Diia.City have come into effect

·     Changes have come into effect that exempt mobilized Private Entrepreneurs from paying taxes during their service

European Commission Allocates €20 Million for Ukrainian Entrepreneurs: Who Can Receive It

The European Innovation Council (EIC) has launched a new funding program for Ukrainian deep tech startups. Selected participants will receive:

• Grants ranging from €300,000 to €500,000 from the EIC.
• Free access to EIC Business Acceleration Services, including coaching and events tailored to the specific needs of startups.
• The right to participate in the Fast Track to the EIC Accelerator program to receive additional grants and investments from the EIC.

Grants are available for deep-tech startups developing solutions in the following areas:

• Cybersecurity
• Artificial Intelligence
• Machine Learning
• Robotics and Autonomous Systems
• Satellite, Space, and Marine Technologies
• Bio and Renewable Technologies

The European Commission emphasizes that companies led by women are particularly encouraged to participate in the program.

Requirements for Applicant Companies:

• Classification as an SME (including startups).
• Registration in Ukraine or initial registration in Ukraine and relocation to an EU country or an associated country of the Horizon Europe program after February 24, 2022 (including startups that received a startup visa in Europe after this date).
• At least one founder/co-founder/top manager/CEO/CTO/CSO who is a Ukrainian citizen.
• TRL from 4 to 6-7.

An “Online entrepreneur's office” will be created on the “Dіia.Business" platform

"The government has adopted a resolution on the implementation of a two-year pilot project to introduce and operate an electronic business support system called “Online entrepreneur's office” with personalized recommendations for small and medium-sized businesses.
Entrepreneurs will now be able to receive push notifications in Diia and immediately go to the relevant section on the Diia.Business portal.
To receive personalized recommendations, entrepreneurs can voluntarily share data with Diia.Business by sharing documents in Diia. 
The system will use anonymized data from the State Tax Service of Ukraine and the Ministry of Justice of Ukraine to automatically group businesses and better understand their needs.
In addition to recommendations, the entrepreneur's online account will allow them to:
•    collect feedback and measure user satisfaction;
•    track the impact of state support on business development.
The Online entrepreneur's office will operate in a pilot format for two years. It will be administered by the Office for Entrepreneurship and Export Development. 
The Ministry of Digital Transformation of Ukraine reported that the functionality of the Online entrepreneur's office has already been created and is undergoing technical testing. After the necessary data is uploaded, it will be officially launched.

Changes regarding residents of Diia.City have come into effect

On July 17, 2025, Resolution  №850 of the Cabinet of Ministers of Ukraine dated July 14, 2025, came into force, introducing changes to the procedure for acquiring and losing the status of residents of Diia.City and reporting requirements.

The updates simplify the procedure for submitting an application for termination of resident status, clarify the procedure for transitioning to special tax conditions, and regulate the formation and maintenance of the Diia.City register.

The applicant may, on their own initiative, attach to the application a statement on the transition to taxation as a resident of Diia.City - a corporate income tax payer under special conditions, the requirements for which are established in accordance with tax legislation. If a decision is made to grant resident status, the Ministry of Digital Transformation of Ukraine sends the relevant information to the State Tax Service's information systems, including data on the transition to special tax conditions.

A new ground for returning a report on the compliance of a Diia.City resident and the documents attached to it without consideration has also been introduced, namely, the presence of information containing discrepancies.

Changes have come into effect that exempt mobilized Private Entrepreneurs from paying taxes during their service

On July 5, amendments to the Tax Code of Ukraine came into force.

The State Tax Service of Ukraine notes that Private Entrepreneur who have been mobilized or have signed a contract for military service are exempt from paying taxes and filing reports for the duration of their service.

Taxes that will not be paid:

- personal income tax,

- single tax,

- military tax,

- social security contributions, if the Private Entrepreneur does not have employees.

This exemption applies automatically based on data from the Unified State Register of Conscripts, Military Service Obligors, and Reservists (date of mobilization, contract signing, demobilization) from the first day of the month of mobilization or contract signing, but not earlier than February 24, 2022.

If there is no information about mobilization, contract, or demobilization in the Unified State Register of Conscripts, Military Personnel, and Reservists, the private entrepreneur may submit an application and copies of supporting documents to the tax authority independently.