Position of the IT Ukraine Association on Diia.City legal regime

Position of the IT Ukraine Association on Diia.City legal regime

The largest Ukrainian profile association of IT companies — the IT Ukraine Association — will support the creation of a special legal and tax regime Diia.City only if the critical aspects of the industry are taken into account.
Critical remarks that the IT Ukraine Association insists on taking into account when implementing the project Diia.City:

  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 in November last year, the  IT Ukraine Association developed proposals and comments on Diia.City. They formed the basis of the alternative bill № 4303-2, which was registered 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 the special legal regime for the IT industry Diia.City was presented. It took into account most of the proposals from the IT industry, including the reduction of the regulatory powers of the Ministry of Digital Transformation and the optional membership to the SRO. Some important issues, including tax, are still being worked out and will be resolved in a separate tax bill. The Association expects to take into account the above-mentioned critical remarks in the draft laws on Diia.City and when they are voted in the Verkhovna Rada by people's deputies.