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New Legal Framework for the IT Industry – Diia City Now Officially Launched!

Tuesday, February 8, is an important event for the IT industry. During Diia Summit 2022 held in Kyiv with the participation of President of Ukraine Volodymyr Zelensky, the special legal framework of Diia City was officially launched, as well as presented new electronic services in Diia.

For the live broadcast record follow the link.

Intetics supports IT industry development and actively participates in tech progress and initiatives. 

Indeed, the idea is fine and Intetics supports it from the very beginning. Yet, the “big boys” should dive first. Then the majority of Ukraine IT will join. Overall, DiiaCity is a great step forward, congratulations everyone!

Boris Kontsevoi, President and CEO, Intetics Inc.

Discover IT leaders opinions (RUS/UKR versions).

The Verkhovna Rada of Ukraine adopted law No. 4303 introducing special tax conditions for residents of Diia City. 

Thus, the Parliament introduced a special regime for Ukrainian IT companies, which the Ministry of Digital Transformation developed.

The launch of “Diia City” will allow Ukraine to become the largest IT hub in Europe.

President of Ukraine Volodymyr Zelenskyy

Source: President od Ukraine official website.

  • Basic principles of functioning: voluntary entry, freedom of activity (all residents have the right to choose forms of cooperation with third parties), non-interference of the state, presumption of legality of residents, stability (special regime is introduced for at least 25 years), extraterritoriality – the regime will operate in any corner of the country.
  • Components of Diia City: favorable tax system – income tax of 18% or distributed profit tax of 9%, UST at the level of 22% of the minimum wage, personal income tax of 5% and military tax of 1.5%; flexible forms of cooperation with IT specialists – gig contracts that combine the benefits of freelance and social guarantees; guarantees of intellectual property protection; elements of English law that facilitate access to investment; guarantees of protection of the person and property from illegal intervention of security officers.

Joining Diia City is voluntary. The special regime will operate in parallel with the current conditions of IT development. Thanks to Diia City, IT companies will pay lower taxes, be able to build a transparent corporate structure and have better access to investment.