The Verkhovna Rada adopted in the first reading the draft law on «Diia City»

Friday, April 16, 2021
The Verkhovna Rada adopted in the first reading the draft law on «Diia City»

The draft law №4303 was developed in close cooperation with industry representatives

Absolutely transparent legal regime for the IT industry - the bill on Diia City was adopted in the first reading.

The IT sector is the global driver of the world's economy. Therefore, the Ministry of Finance is working to create the best conditions for the effective development of the IT industry in Ukraine. Today, the Parliament of Ukraine adopted in the first reading the revised bill №4303. It lays the groundwork for the country's introduction of a special legal regime for the IT industry - Diia City.

Diia City is, first of all, a completely transparent legal regime. The bill defines the organizational and legal framework for the operation of Diia City. The project opens new opportunities for the development of food IT companies and startups in Ukraine.

The main goal of Diia City is to stimulate the development of Ukraine as a digital state. Thanks to the project, the IT industry will reach 10% of the country's GDP - now the share is about 3.7-4.2%. In addition, the revenues of the IT industry in Ukraine in 5 years may increase significantly - from $ 6 billion to $ 16.5 billion. And the number of jobs in the industry will increase to 450 thousand by 2025.

Participation in the special regime will be voluntary. Each market participant will have the freedom to choose - Diia City mode or normal working conditions. State influence on Diia City residents is minimized, and clear entry criteria are defined.

Only legal entities registered under Ukrainian law can become its residents.

What does the bill provide:

  • freedom of activity (all residents have the right to carry out economic activities independently, as well as to choose the forms of its organization and forms of cooperation with third parties);
  • non-interference of the state;
  • presumption of legality of residents' activity;
  • stability - the regime is introduced for at least 15 years;
  • the formal nature of the procedure for acquiring resident status.

The document provides for the introduction of a new form of cooperation between companies and professionals, as well as additional mechanisms to protect intellectual property rights and investments.

The draft law №4303 was developed in close cooperation with industry representatives. Most of the industry's wishes were taken into account in the document.

Diia City is not just a bill №4303. We will remind, in parliament on April 14 registered the bill №5376 which defines tax conditions of a special regime. As promised by the authors of the Diia City concept, these two documents are considered by parliament as synchronously as possible.

Information is taken from the official Government portal.

You will be interested