On 20 December 2021, the President of Ukraine has signed Law No. 1946-IX providing ‘Diia City’ resident IT companies special tax and legal regime from 2022. This will come into force at the end of January 2022.
The Law provides for a number of conditions, including the ability to choose which corporate tax to pay: withholding tax of 9% or income tax of 18%.
It also introduces special rates for employees of IT companies and gig specialists: personal income tax at the rate of 5%, single social contribution of 22% of the minimum wage, military duty 1.5%. If a specialist receives more than 240 thousand euros per year, all income above this limit will be taxed at 18% of personal income tax.
