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Diia City: Verkhovna Rada adopted the bill in the first reading

The Verkhovna Rada adopted the draft law on Diia City in the first reading. The bill imposes a special taxation regime for companies—residents of Diia City and their employees, including gig workers. He was supported by 281 people's deputies.

According to the draft law, companies will be able to choose between paying income tax and tax on siphoned off capital—18% and 9%, respectively.

In addition, the draft law exempts individuals from taxation of income in the form of dividends if the company pays them out more often than twice a year. Also, the zero tax rate will apply to income from the sale by an individual of a share in a company — resident of Diia City, if the individual owns the share for no more than one year.

In particular, the tax allowance is provided for individuals who decide to purchase a share in a startup company. The allowance will depend on the amount of the transaction amount.

The government expects that imposing such regulations will allow IT companies to more actively attract investment for development. Moreover, companies will have an additional incentive to reinvest funds in business development.

Also, the draft law imposes special tax rates for employees of IT companies. It is proposed to impose a tax on personal income of 5%, USSC (unified social security contribution) of 22% of the minimum wage, and 1.5% of the military tax.

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