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      Diia City tax regime

      Since 2022, Ukraine has implemented a special tax regime for tech companies called Diia City, introduced in Law of Ukraine No. 1667-IX "On Stimulating the Development of the Digital Economy in Ukraine” of 15 July 2021 and Law of Ukraine No. 1946-IX "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Stimulating the Development of the Digital Economy in Ukraine” of 14 December 2021.

      The Diia City regime envisages the following opportunities for Ukrainian companies that are Diia City residents:

      • Preferential taxation of employees' salaries and compensation for gig contractors, as well as preferential treatment of earnings
      • Potential to utilise additional legal instruments, including gig contracts, options, and convertible loan agreements.
      Дія сіті

      Diia City

      New Tax Regime for Tech Companies

       

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      oleksandr-boboshko
      Oleksandr Boboshko

      Partner, Tax & Legal, Tax Advisory

      KPMG in Ukraine

      Request for proposal

      Our services

      Assessing the tax burden and historical risks of the current business structure
      • Assessing existing structure tax burdens
      • Identifying optimal means of transiting to a new structure and minimising historical risks
      Comprehensive preparation for companies planning to acquir Diia City resident status
      • Registering Ukrainian companies that plan to apply for Diia City status, as well as drafting the necessary constituent and corporate documents
      • Drafting contracts, internal regulations, job descriptions for engaging IT specialists through employment contracts or gig contracts
      • Maintaining accounting and tax records for a Ukrainian company
      Structuring operations to maximise Diia City tax benefits and new instruments
      • Determining optimal group company structure to take full advantage of Diia City status
      • Simulating tax burdens when applying the standard income tax regime and the 9% tax regime for certain transactions
      Preparing documents required for submission to the Ukrainian Ministry of Digital Transformation to obtain Diia City status
      • Preparing documents required for submission to the Ukrainian Ministry of Digital Transformation to obtain Diia City status
      • Preparing an independent auditor's opinion as required by law for applying for Diia City status