Effective 1 January 2025, certain provisions of the Law of Ukraine No. 4113-IX, “On Amendments to the Tax Code of Ukraine and Other Legislative Acts Regarding the Stimulation of the Digital Economy in Ukraine” (adopted on 4 December 2024), have come into force.
Key changes include:
- Residents of “Diia City” can apply a reduced personal income tax rate of 5% until December 31 of the year following their acquisition of residency status—even if they do not meet the minimum staffing requirement of at least nine employees or gig specialists, subject to certain conditions;
- The calculation of the unified social contribution has been refined for periods when “Diia City” residents do not comply with the legal requirements regarding the average number of employees; and
- Voluntary donations by “Diia City” residents whether in funds, goods, works, or services to the Ukrainian Armed Forces, other military formations, or the National Bank of Ukraine’s designated defense and humanitarian aid accounts are exempt from corporate profits tax during martial law.
These changes are intended to support Ukraine’s digital economy while providing financial flexibility for “Diia City” residents amid ongoing challenges.
For further information please contact Dmytro Ivanusa, Partner at divanusa@mazurivanusa.com