Additional benefits for employees: taxation of Diya City residents

Are non-personalized fringe benefits in favor of employees and gig workers subject to income tax paid under special conditions?

The object of taxation is, in particular, transactions on the transfer of property (provision of works, services) (transfer of risks associated with ownership or transfer of results of works, services) to a person who is not a resident of Diia City - a taxpayer on special conditions, without making claims for compensation of its (their) value, including the free transfer of property (works, services) in the amount determined in accordance with the rules established by sub-clause 135.2.1.6 of the TCU.

In this case, such a taxable object is reduced by the amount of:

• the value of property (works, services) provided without making claims for compensation of their value (including free of charge), if their value is subject to personal income tax in accordance with Section IV of the TCU or is not included in the calculation of the total monthly (annual) taxable income in accordance with Art. 165 of the TCU and/or is not taxed in accordance with clause 170.7 of the TCU - shall be reflected in line 16.3 of the DIA Annex and, accordingly, shall be taken into account in line 16 and in the calculation of the indicator of line 17 of the DIA Annex;
• additional benefits provided for the benefit of specialists of Diia City residents, if such additional benefits are not subject to personal income tax due to the lack of personalized accounting - shall be reflected in line 16.4 of the Diia Annex and, accordingly, shall be taken into account in line 16 and when calculating the indicator of line 17 of the Diia Annex.