Changes to the Diia City Legal Regime for the Period of Martial Law Have Been Proposed

In Draft Law No. 9319 “On Amendments to the Tax Code of Ukraine and Certain Other Legislative Acts on Stimulating the Development of the Digital Economy in Ukraine”, its authors propose to improve tax regulation of the functioning of the Diia City legal regime and adapt it to the conditions of martial law.

What Changes Are Proposed?

1) to the Tax Code of Ukraine – regarding specification of wages and (or) remuneration taxation under the gig contract of specialists of the Diia City resident:

• in particular, it is offered not to include the requirement of average accounting number of employees and gig specialists for tax resident agents of Diia City, who have acquired such a status under part three of Article 5 of the Law “On stimulation of Development of Digital Economy in Ukraine” (hereinafter – “Law on Diia City”), until December 31 of the calendar year following the calendar year in which the status of a resident of Diia City was acquired;

2) to the Law on Single Social Contribution – regarding clarification of the size of the single social contribution paid for specialists of the Diia City resident, who has acquired the status of a resident in the manner determined by part three of Article 5 of the Law on Diia City (also not to extend the requirement regarding the average accounting number of employees and gig specialists);

3) to the Law on Diia City:

• the new version of Article 6 stipulates that an applicant may add an application for transition to taxation as a Diia City resident (a taxpayer under special conditions) to the application for acquiring the status of a Diia City resident;

• additional features of the Diia City register in order to comply with the requirements of the Law of Ukraine “On Public Electronic Registers”;

• specification of powers of the authorized body (as stipulated by the Law on Diia City) regarding formation and implementation of state policies in the field of development and functioning of the Diia City legal regime;

• establishment of additional features in case of impossibility of acquisition of Diia City residency by legal entities, the direct or mediated owners of which are residents of the aggressor state;

4) to the Law of Ukraine “On Mobilization Preparation and Mobilization” – regarding specification of categories of conscripts subject to reservation, in particular, the possibility of reservation of conscripts who are gig specialists of Diia City residents;

5) to the Law of Ukraine “On Education” – regarding opportunities for gig specialists to obtain education during execution of works and/or provision of services under a gig contract, which provides for a combination of their studies in educational institutions.

Draft Law No. 9319