At IT Arena the Association Discussed Diia City Implementation

At IT Arena the Association Discussed Diia City Implementation

Discussions over the Diia City special legal and tax regime continue. That is why we participated in Diia City Meet-up, organized by the Ministry of Digital Transformation within the IT Arena conference in Lviv. IT Ukraine Association was represented by Vitaly Sedler, the Association President and Intellias CEO.

Together with other panel participants and guests, we discussed the Diia City goals and the changes the regime will bring to the IT industry, as well as the gig contracts implementation peculiarities and protection of private entrepreneurs outside the regime.

Here are the key ideas of the meet-up:

  1. Currently, the most popular issues for Diia City communication are the following: protection of private entrepreneurs outside the regime, the ability to choose a model of cooperation with professionals convenient for the organization, tax rates for companies, etc.;
  2. Within Diia City, the residents will be able to choose forms of cooperation from the following: gig contracts, private entrepreneur model and employment contracts under the Labor Code. Residence in Diia City is optional;
  3. Tax burden for gig contracts and employment contracts is the following: simplified system + 1.5 % military tax;
  4. Throughout the preparation of drafts laws No. 4302 and No. 5376, the business community, represented by leading business associations, works closely with the authorities and provides numerous wishes, comments and remarks. IT Ukraine Association continues to protect the interests of business, as currently, it is the largest specialized association in Ukraine, representing the interests of over 60,000 specialists.

Photo source: IT Arena

We are grateful for the opportunity to discuss the issues which are so important for the industry. We also thank the other speakers of the panel: Olha Mahaletska, the Head of the Office of the National Investment Council under the President of Ukraine, Sviatoslav Kavetskyi, N-iX Director of Industry Affairs, and Vitalii Odzhykovskyi, a counsel at Sayenko Kharenko.

It is worth reminding that work is currently underway on the Diia City tax part. Last week, the Verkhovna Rada Committee on Finance, Tax and Customs Policy began consideration of draft law No. 5376 in the second reading, which is a tax component of the Diia City special regime.

The Association insists that the Committee should reject amendments that are categorically unacceptable for IT business. And only if the authorities meet these critical requirements, the Association will be ready to support draft law No. 5376. The final consideration and approval of the draft law prior to the second reading is expected on October 12.