• Українською
  • Mykhailo Fedorov: We will double the volume of the Ukrainian IT market to $ 11.8 billion
    Service of the Deputy Prime Minister of Ukraine, posted 03 November 2020 15:57

    The Verkhovna Rada has registered bills to launch Diia City. These are the main bills for the development of the IT sector in Ukraine. In 5 years, Diia City will double the size of the IT market to $ 11.8 billion, Mykhailo Fedorov said during an online briefing "New opportunities for IT development in Ukraine."

    “We are creating Diia City, a revolutionary project for our economy. In 5 years, Diia City will double the size of the IT market to $ 11.8 billion and the number of jobs to 450,000. These will be some of the best conditions for running an IT business and creative industry in the world,” commented Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov.

    The main messages from the briefing of Mykhailo Fedorov:

    • Diia City is a special legal regime for IT companies. A revolutionary solution for the industry.
    • One of the key goals of the Ministry is to increase the share of IT in the country's GDP to 10% (now it is less than 5%).
    • Diia City bills bring together all the necessary initiatives to develop the IT market - legal and organizational. Due to this fact, the Ministry of Digital Transformation will attract billions in investments.
    • An important innovation is the introduction of the GIG-model of labor relations. The concept adds to the usual model of freelance basic labor rights of the employee: vacation, sick leave, minimum wage and more.
    • Amendments to the CPC (Criminal Procedural Code) - the bill increases the authorization of investigative actions against residents of Diia City to the level of the head (prosecutor) of the regional prosecutor's office.
    • Diia City is not tied to a specific territory. A special legal regime will apply throughout the territory.
    • Diia City can serve as an example for the transformation of the legal system in the country as a whole.
    • There is already a queue among companies that want to become residents of Diia City.
    • Why is Diia City attractive for Ukrainian IT companies? Liberalization of labor relations and favorable tax conditions. In addition, a clear financial structure of companies and a tax system will allow for attracting more investment and enter international markets.

    By the end of the week, the Parliament is also scheduled to register a bill on the Diia City package, which amends the Tax Code.

    The adoption of these documents is the basis for the creation of a digital state and the formation of Ukraine as one of the leaders in the global IT market.