The Verkhovna Rada of Ukraine has approved draft law No. 9319, which improves tax legislation for Diia.City residents.

The entire IT and technology sector has been awaiting the passage of bill No. 9319, as it simplifies taxation procedures for Diia.City residents and their specialists, while clarifying several crucial aspects. This makes the Diia.City regime more comprehensible and transparent for foreign investors, consequently promoting Ukraine as a jurisdiction for globally expanding tech businesses.

“The law’s adoption is a critical decision for the entire IT and tech community. It’s also a landmark event for Diia.City United, as the Union actively participated in shaping the bill’s approaches and provisions and made significant efforts for its passage. It’s important to us that our members’ requests and concerns are transformed into legislative norms,” comments Natalia Mykolska, Executive Director of the Union.

Key positive changes introduced by the law include:

  • allowing Diia.City residents to allocate part of specialists’ compensation to non-state pension provision without changing the special tax rate
  • canceling the requirement to sign service acts for gig specialists
  • eliminating VAT on services provided by foreign gig specialists
  • exempting charitable assistance provided by Diia.City residents to the Armed Forces of Ukraine from taxation
  • preserving the preferential personal income tax rate and the minimum unified social contribution rate for Diia.City residents with startup status
  • establishing a single reporting date of December 31 for Diia.City residency compliance, regardless of the month of residency acquisition

“We are grateful for the initiative and collaboration of the Ministry of Digital Transformation, Anton Shvachko, Head of the Digital Business Development Subcommittee within the Digital Transformation Committee, as well as Danylo Hetmantsev, Yaroslav Zhelezniak, and other members of the Finance, Tax, and Customs Policy Committee,” Natalia Mykolska adds.

The law will come into force next month after being signed by the President.

 

REFERENCE. Diia.City is a unique legal and tax space for IT companies in Ukraine, enabling them to operate openly, profitably, and conveniently. Diia.City has combined favourable tax conditions with effective tools that allow companies to build a transparent corporate structure, attract foreign investment more easily, and use additional mechanisms to protect intangible assets. In three years, over 1,400 companies have become residents of Diia.City, engaging more than 90,000 professionals in creating and supporting technological products and services.