The new policy is part of Ukraine’s ambitious plan targeting increase of high tech sector share in  domestic economy.

Diya City incentive is brining in tax benefits for IT sector earlier announced by the Ukrainian president Volodymyr Zelensky.

Signing up with Diya. City program, IT businesses, their employees and gig workers will be offered special tax residency status.

The status of a Diya. City resident will be available only to companies (a) registered in Ukraine that (b) generate 90% of their net revenues through tech projects, (c) have at least 9 employees or gig workers whose (d) monthly  pay hovers above 1200 euros.

Diya City residents  will have to pay  either 18% corporate income tax (“CIT”) or 9% tax on withdrawn capital (exit capital tax).

Employees / gig workers who will apply for Diia City residency will pay  1,5% military tax, 5% personal income tax when earning less than  240,000 euros yearly,  or  18% personal tax if their yearly income is over 240,000 euros.

Diya City tax policy will allow a 3 years’ tax relief  period keeping  outsourcing services exempt from taxation.

The policy got the votes of 285 lawmakers.