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Friday, 07 May 2021 06:38 GMT

Ukraine- Parliament registers bill on tax rules for IT sector


(MENAFN - UkrinForm) The Verkhovna Rada of Ukraine registered bill No.5376 'On Amendments to the Tax Code of Ukraine to Stimulate the Development of the Digital Economy in Ukraine, which creates attractive tax rules for IT companies within the Diia City project.

The press service of the Ministry of Digital Transformation of Ukraine wrote this on its Telegram channel, Ukrinform reports.

The Diia City project will provide for the following rules for IT companies: personal income tax will be reduced from 18% to 5%; the single social contribution will be calculated based on the minimum wage; Diia City resident companies will be able to choose which corporate tax to pay - on profit (18%) or on withdrawn capital (9%); the military fee will be 1.5%.

The Ministry of Digital Transformation notes that Diia City will promote the growth of IT industry, profits from which will increase revenues to the state budget in the future.

"Diia City shows the effectiveness of the low-tax model on the example of one sector and will be a pilot project to restart the entire economy," the press service added.

As reported by Ukrinform, in early June 2020, the Ministry of Digital Transformation announced the launch of the Diia City project - the world's first virtual business country. The purpose of the project is to create favorable conditions for the development of innovative and technological business. It is planned that the project will be of interest to Ukrainian and international IT companies, investment funds, startups, educational organizations.

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