Can “Diia City” Compete With Similar Applications From Other Countries

by Olha Povaliaieva
Monday, December 20, 2021
Can “Diia City” Compete With Similar Applications From Other Countries

"Diia City" and comparison with tax regimes of other countries

A few years ago, the Ukrainian Ministry of digital transformation began to develop a special project to solve several state issues in remote mode. Diia City is a tax regime for IT specialists.

The regime has been working for a year. Similar tax and legal regimes exist in several countries of the world:

  • Georgia;
  • Belarus;
  • Cyprus;
  • Moldova;
  • Poland;
  • Kazakhstan;
  • Delaware, America

Residents of the Ukrainian IT regime will have reduced taxation, the opportunity to conclude gig contracts, new investment instruments, and improved rights protection.

By comparison, in Kazakhstan, residents have the right not to request permission to use foreign labor. There is no quota for this. And a work visa under the special regime is issued for five years.

In Cyprus and Poland, there is no regime as such. But there are special tools there, such as the Intellectual Property Box (Cyprus). Within it, IT industry specialists can reduce taxation to 80%. This advantage benefits those who work with intellectual property and R&D.

From the two modes, it can already be seen that Diia City has a slightly expanded capability. In addition, the Ukrainian application has a simplified entry process. It is enough to fill in and submit an application to the Ministry of digital policy and receive a reply.

The IT sphere of Ukraine is rapidly growing and broadening the people's minds. This branch is a growing sector of the economy. As we see, Ukrainian specialists have one of the strongest functioning IT climates in the world.

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