Rada passes at first reading tax bill on Diia City

The Verkhovna Rada has passed at the first reading bill No. 5376 on amendments to the Tax Code of Ukraine regarding the stimulation of the development of the digital economy in Ukraine, which regulates the tax conditions of the special legal regime Diia City.

Some 281 MPs voted for the relevant document.

The bill introduces a special taxation regime for companies-residents of Diia City and the income of their employees, including gig specialists. The document, in particular, gives Diia City residents the opportunity to choose between paying income tax (18%) and tax on withdrawn capital at a rate of 9%.

The bill exempts individuals from taxation on dividends accrued by a resident company, provided that they are paid no more than once every two years. In addition, a zero tax rate will be applied to income from the sale by an individual of a share in a resident company of Diia City, provided that an individual has owned it for more than one year.

The bill also introduces a tax cut for individuals in case of acquiring a stake in a start-up company that is a resident of Diia City. The amount of the discount will depend on the amount of the transaction.

It is expected that the introduction of these norms will allow IT companies to more actively attract investments for scaling and development. They will also have an additional incentive to reinvest in business development.

The bill also establishes special tax rates for employees of IT companies. So, it is proposed to introduce tax on income of individuals in the amount of 5% (the wage of employees under employment contracts, remuneration of gig employees under gig contracts, royalties for the creation of an official work and the transfer of rights to official works), single social security tax – 22% of the minimum wage and 1.5% military duty.

Interfax-Ukraine

News about recent political developments in Ukraine, key Ukrainian economic news and major current events in the CIS and the rest of the world.

https://en.interfax.com.ua/

Related news
CDC investigating heart inflammation among young vaccinated people.

CDC investigating heart inflammation among young vaccinated people.

As the Delta variant grows in the U.S., the CDC is looking into more than 300 people under 30 who have experienced myocarditis after getting the COVID-19 vaccine.

Tropical threat takes aim at Gulf coast

Tropical threat takes aim at Gulf coast

Elwyn Lopez reports from New Orleans as tropical storm warnings stretch up to the Alabama-Florida border.

Germany marks 80 years since Nazis invaded the Soviet Union - DW News.

Germany marks 80 years since Nazis invaded the Soviet Union - DW News.

Germany is marking 80 years since the Nazi invasion of the Soviet Union. The surprise attack on June 22, 1941, would become the biggest and bloodiest front in World War Two, and end in Nazi Germany's complete destruction. By the end of the war, an...

European Union Lifts Travel Restrictions For Americans.

European Union Lifts Travel Restrictions For Americans.

NBC News’ Claudio Lavanga reports on what Americans should know before European travel and the likelihood of a possible restriction change. » Subscribe to NBC News: » Watch more NBC video: NBC News Digital is a collection of innovative and powerfu...

Chaos as British Airways plane’s nose COLLAPSES at Heathrow Airport.

Chaos as British Airways plane’s nose COLLAPSES at Heathrow Airport.

A BRITISH Airways plane’s nose has collapsed at Heathrow Airport - sparking chaos. Footage shows dozens of emergency services at the scene of the incident, with the nose of the plane on the tarmac of the airport. Fire engines, ambulances and polic...

Western U.S. gripped by drought and wildfire threat during record heat wave

Western U.S. gripped by drought and wildfire threat during record heat wave

Millions of people are under heat advisories as a record-breaking heat wave grips much of the western United States, worsening droughts and increasing the threat of wildfires. CBS News national correspondent Jonathan Vigliotti spoke with CBSN's Vl...