What an updated bill on Diia.City offers the IT industry

What an updated bill on Diia.City offers the IT industry

On March 17, the Verkhovna Rada's Committee on Digital Transformation considered and recommended that the parliament takes as a basis Bill 4303 on a special regime for the IT sector Diia.City.

The updated version of Bill 4303 differs from the previous one mainly in the following:

  • the regulatory powers of the  Ministry of Digital Transformation are reduced;
  • membership in the Diia.City resident organization (so-called SRO) has become optional.

Bill 4303 provides for the following regulatory powers of the "governing body" of Diia.City, i.e. the Ministry of Digital Transformation:

  1. deciding on the acquisition / loss / refusal to acquire the status of a resident of Diia.City and on leaving the application for the acquisition of the status of a resident without consideration; 
  2. maintaining a register of residents of Diia.City, which should be publicly available on the Internet;
  3. monitoring the compliance of applicants and residents of Diia.City with the established requirements;
  4. consideration of information on residents of Diia.City for the presence of signs that may be grounds for a decision on the loss of resident status;
  5. accumulation of information about applicants and residents of Diia.City.

Initially, the Diia.City regime was planned as a package reform, consisting of the main law, a tax law (not currently registered in the Verkhovna Rada of Ukraine) and a law on the protection of Diia.City residents from criminal prosecution. People's deputies are expected to consider and vote on the revised version of Bill 4303 on Diia.City in the near future.

We remind you that the main bill on Diia.City (№ 4303) was registered on November 2, 2020. Proposals and comments on the bill from IT Ukraine formed the basis of the alternative bill 4303-2, which was developed at the initiative of the largest business associations in Ukraine. On November 18, it was registered in the Verkhovna Rada by people's deputies Kira Rudyk and Andriy Nikolayenko with the support of representatives of five political forces. Most of the proposals from the IT industry were supported and sent by the Public Council under the  Ministry of Digital Transformation. On March 3, an alternative bill from the IT industry (№ 4303-2) was rejected by people's deputies.