The Specialized Committee Supported the Tax Draft Law on Diia City

The Specialized Committee Supported the Tax Draft Law on Diia City

On October 12, the Verkhovna Rada Committee on Finance, Tax and Customs Policy considered and approved the wording of draft law No. 5376, which is a tax part of the Diia City special legal regime.

As a result of the meeting, the Tax Committee recommended that the Verkhovna Rada of Ukraine adopt in the second reading and as a whole the draft law of Ukraine on Amendments to the Tax Code of Ukraine to stimulate the development of the digital economy in Ukraine (Registration No. 5376).

In fact, this means that the IT industry has managed to defend the tax burden for Diia City residents: tax on withdrawn capital — 9%, tax for individuals — 5%, military tax — 1.5%, as well as the ability to attract private entrepreneurs to perform works / provide services for the next 3 years.

Dmytro Ovcharenko, the VP for Financial and Legal Matters of IT Ukraine Association and CEO of Alcor, commented:

Today, the Tax Committee supported the draft law on the tax part of Diia City and we positively assess this decision. Now our struggle is moving to the session hall, so it is important to stay consolidated and defend this text of the draft law to the end. Despite the fact that there are still many controversial points for the industry, it is important that we managed to defend the transition period of 3 years. This will allow the industry, which has been developing independently for 30 years, to adapt more correctly to the new regime.

At the Committee meeting, the discussion between deputies, representatives of the executive authorities and business associations on the numerous amendments to the draft law lasted for almost two hours. The two-year experience of the ongoing dialogue between the business community and the authorities in the framework of Diia City has demonstrated its critical importance and the need for constant communication of such initiatives.

We are grateful to Deputy Prime Minister Mykhailo Fedorov and MPs for their support of the IT industry!