President Volodymyr Zelensky on Dec. 18 signed bill №5676 creating a special taxation system for tech firms. Approved by the parliament on Dec. 14, this is the second of three laws that are necessary to create the Diia City system.
Diia City is a collection of tax, employment and legal benefits that Ukrainian and foreign IT firms will be granted in an attempt to boost Ukraine’s tech industry.
Under the latest bill, tech firms that participate in Diia City and use labor contracts will pay fewer taxes, while firms that already save on taxes by contracting employees as individual entrepreneurs will not receive special benefits. The bill requires them to gradually switch to labor contracts over the next five years.
However, the concept of Diia City has been controversial among tech firms.Zelensky signs Diia City bill to change taxation for tech firmsRead More