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2 years of Diia.City space: top companies among residents, billions of taxes paid, and high business assessment

09 Feb, 2024
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2 years of Diia.City space: top companies among residents, billions of taxes paid, and high business assessment

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The unique legal and tax space of Diia.City aims to transform Ukraine into a powerful technological hub. Currently, over 830 companies benefit from the project, employing over 62,000 specialists. In 2023, Diia.City residents paid 8.5 billion UAH in taxes.

"The IT industry is one of the key sectors of our economy, providing foreign exchange earnings, paying taxes, and creating new jobs. Despite the war, the industry has retained its potential and expertise. And now, it actively develops the critically needed defense-tech for Ukraine. Drones, robotic systems, automated management, communication and protection systems, EW, and much more. For us as a state, the number one task is to provide all the conditions for such businesses to maintain their stability and develop," says Prime Minister of Ukraine Denys Shmyhal.

Diia.City's separate focus is on supporting defense-tech companies that create drones, robots, EW, and other technologies that strengthen the Armed Forces. Currently, there are over 100 such companies in Diia.City.

"The architecture of Diia.City resembles a sophisticated and flexible IT product. This allows the space to quickly respond to challenges that arise not only in Ukraine but also worldwide. Defense-tech companies can already join Diia.City. Over 100 companies have become residents of the space. This is important because they create technologies that are crucial for us to overcome the enemy. And we will scale this positive experience of supporting important industries by the state. In particular, plans for this year include expanding the spheres for medtech companies that deal with creating prosthetics or launching programs for the treatment of wounded soldiers," said Vice Prime Minister for Innovation, Education, Science and Technology Development, Minister of Digital Transformation of Ukraine Mykhailo Fedorov.

Diia.City creates all the conditions for technological companies to develop and scale — favorable taxes, reinvestment-friendly PnVС as a powerful tool, flexible cooperation terms, investment attraction tools, and protection of intangible assets.

 

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According to the "Analysis of Diia.City: Results, Business Impact, and Perspectives" study by the Advanter Group, commissioned by the Association of Residents "Diia.City United," 98% of resident companies positively assess the impact of Diia.City on business development.

For the global technology business and investors, Diia.City signals the reliability and attractiveness of Ukrainian jurisdiction for the development of IT companies.

"Supporting the Ukrainian technology sector is a great honor for the United States. Diia.City has enormous potential to continue improving conditions for Ukrainian businesses. The space is one example of how the U.S. Government is helping to improve and strengthen the business climate in Ukraine," noted U.S. Ambassador to Ukraine Bridget Brink.

Among Diia.City's future goals are expanding the types of activities, including for companies creating bionic prostheses; global promotion of the Ukrainian technology sector; increasing the number of jobs in IT.

The implementation of the Diia.City project became possible thanks to the systemic support of the USAID Competitive Economy of Ukraine Programme.

The Odessa Journal

The Odessa Journal

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