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Diia City: Zelenskyy signed a law on taxation of IT companies

President Volodymyr Zelenskyy signed Law No. 4303 on a special legal regime for the IT industry in Ukraine—Diia City. The law provides for the introduction of special tax treatment and a new employment model for IT companies.

In particular, companies will be able to voluntarily join Diia City. Also, such companies will be able to employ their staff members through GIG contracts. In addition, such a regime will provide guarantees for IP protection and the implementation of the British law elements.

The initiators of the special regime tried to take into account the needs of the IT industry as much as possible and contribute to the establishment of a powerful European IT hub in Ukraine.

Companies that are involved in the following activities can join Diia City:

  • software development and testing;
  • publishing computer games;
  • publishing and distribution of software;
  • teaching computer literacy, programming, testing and software technical support;
  • digital marketing;
  • R & D in the field of IT and telecom;
  • cybersport;
  • cybersecurity.

Context. The Verkhovna Rada adopted bill No. 4303 in the second reading on July 15, 2021. The law also provides that freedom of activity, non-interference, and presumption of activity legitimacy apply not only to the Diia City residents, but also to all IT companies.

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