On February 8, 2022, Diya.City — a unique legal and tax space for IT companies — was launched in Ukraine.
Over the course of a year, Monobank, Nova Poshta, Samsung, AJAX, EPAM, and a total of over 430 residents joined Diya.City, which currently employs 35,000 specialists. In 2022 resident companies paid over 4 billion hryvnias to the budget of Ukrainewhich is 6% of the total taxes paid by the industry.
Diya.City offers a new ecosystem for doing business in Ukraine: residents (both Ukrainian and foreign companies) acquire a special legal status, special tax conditions and liberalized labor relations. Key advantages include a tax on withdrawn capital instead of income tax; employment both with KZpP and contract (alternative FOP); the European system of acquisition and protection of intellectual property. Learn more about all of this here.
At the end of March, the government simplified the conditions for entry and acquisition of Diya.City resident status for IT companies during martial law — criteria regarding the number of employees, average salary, as well as a compliance report and an independent audit opinion were canceled.
Among the new goals of the Diya.City space, which were affected by the full-scale invasion of Russia, attraction and support of military-tech companiesengaged in the creation of drones, security systems, thermal imagers, optical devices, etc.
“These are technologies that save the lives of our defenders and bring victory closer. We continue to scale the best tax and legal space in Europe and develop Ukraine as a technological state,” says the head of the Ministry of Statistics Mykhailo Fedorov.
Before the start of the war, the Ministry of Digital predicted that thanks to Diya.City, the growth rate of the IT sector could double to 40–50% per year, and the revenues of the IT industry in Ukraine could increase to $16.5-$17 billion by 2025. At the same time the number of jobs in the industry may increase to 450,000, and the IT industry may reach 10% of the country’s GDP.
Booking of IT specialists from mobilization — the Ministry of Digital has published an algorithm for residents of Diya City and others.
