Accounting for Diia City residents

Diia City is not a relief you obtain once and forget. It is a regime with criteria to be met every year: the number of specialists engaged, the level of remuneration, the share of qualifying income. Losing the status means tax for the past period is recalculated – and that costs more than everything the regime saves.

We keep residents’ books so that compliance with the criteria is visible monthly, not at the year end.

What the service covers

• drawing up and accounting for gig contracts: a distinct form of engagement, neither employment nor an ordinary services contract;
• calculating gig specialists’ remuneration and employees’ pay at the regime’s rates;
• reporting on payments and contributions;
• monthly monitoring of the residency criteria – headcount engaged, average remuneration, share of qualifying income;
• accounting under the chosen profit taxation model, and the consequences of switching;
• transactions with non-residents: most residents work for foreign clients, which is foreign trade accounting;
• preparing documents for inspections and for confirming the status.

The gig contract is the main difference

A gig contract is not an employment contract, but nor is it an ordinary contract with a sole trader: it has its own content requirements, its own treatment of payments and its own consequences on termination. Getting the paperwork wrong turns it into employment, with all the payroll taxes assessed under the general rules.

So the HR side cannot be run “as usual” here – we separate employees, gig specialists and sole trader contractors from the outset. The general principles of the payroll area are on the payroll and HR page.

Two profit taxation models

A resident chooses between corporate income tax under the general rules and tax on withdrawn capital. The choice depends on whether you plan to distribute profit or reinvest it, and on your cost structure. It is calculated in advance, together with tax planning, rather than switched each year on a hunch.

What we check every month

The number of specialists engaged, the average remuneration and the share of qualifying income. If a figure is approaching its limit, you hear about it while the outcome can still be influenced, not at the moment the status has already gone.

What it costs

It depends on the number of gig specialists and employees, the volume of non-resident transactions, and whether you need support joining the regime. We quote after a conversation about your structure.

Common questions

Do you help companies join Diia City?

We prepare the accounting and HR side for entry: the structure of engagements with specialists, the compliance calculation, the choice of taxation model. That is what determines whether you keep the status afterwards.

What happens if the criteria stop being met?

The status is lost and tax for the relevant period is recalculated under the general rules. That is exactly why we monitor the figures monthly rather than at the year end.

Can gig contracts and ordinary sole traders be combined?

Yes, but the line between them has to be visible in the documents, not only in intent. We draw up both so that an inspection does not merge them into one.

Do you work with companies only planning to join?

Yes. Calculating the consequences before entry is cheaper than restructuring afterwards. On a consultation we show both scenarios in figures.