Ukraine launches tax system for IT industry Diia.City

Ukraine has launched a tax system for the IT industry Diia.City.

Oleksandr Borniakov, head of the Diia.City project, announced this during his speech at the Diia summit, reports the Ukrainian press agency.

“We are acting so that not only talented Ukrainians stay at home, but also international IT companies become residents of Diia.City,” Borniakov said.

Residents of Diia.City will be able to benefit from preferential tax conditions.

In particular, they will pay taxes from the salary fund: personal income tax in the amount of 5%, military duty – 1.5%, unified social contribution – 22% of the minimum wage; corporate taxes: a choice of withdrawn capital tax – 9% or income tax – 18%.

In addition, residents are provided with incentives for “angel” investments – 0% on personal income in the form of dividends, subject to payment no more than once every 2 years, and a tax allowance for tax on personal income is granted for the amount of investments in Ukrainian startups.

One of the first residents of Diia.City will be international fintech company Revolut.

As the Ukrainian News Agency reported earlier, in December 2021, the Verkhovna Rada determined the tax terms of a special legal regime for IT Diia City.

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