Deputies supported the bill on Diia.City in the first reading

Deputies supported the bill on Diia.City in the first reading

On April 15, the Verkhovna Rada of Ukraine passed bill № 4303 on a special legal regime for IT Diia.City in the first reading. 227 people's deputies voted for it. At the same time, the tax bill № 5376 on  Diia.City was registered in the Verkhovna Rada on April 13.

The second reading of the bill № 4303 will take place at the end of April. If the critical moments from the business community are taken into account, the IT Ukraine Association will consider supporting Diia.City. The remarks include:

  1. Preservation of the declared tax burden for 15 years: 5% income tax for specialists, SDR 22% from one minimum wage, military tax 1.5%;
  2. Protection of private individuals outside of Diia.City to prevent pressure on IT companies to join Diia.City;
  3. Possibility to work with private individuals for residents of Diia City for at least three years, in case the resident company uses the withheld capital tax, without restrictions and additional taxation of such interaction;
  4. Change the requirement for a mandatory annual audit to providing standard financial statements for small and micro-businesses;
  5. Possibility to suspend the decision to deprive the company of the status of a resident of Diia.City by the authorized body (Ministry of Digital Transformation) until the court decision.

We remind you that bill № 4303 was registered in the parliament on November 2, 2020. At the same time, the IT Ukraine Association developed a number of proposals and comments, which formed the basis of an alternative bill № 4303-2. It was registered in the Verkhovna Rada with the support of business associations ACC, EBA and SUP. However, on March 3, people's deputies rejected an alternative bill from the IT industry.

On March 17, an updated version of the bill № 4303 on a special legal regime for the IT industry Diia.City was presented. It took into account some, but not all, proposals from