Tax Contributions from IT Companies in Diia.City Rise
Ukrainian IT firms operating under the "Diia.City" framework have contributed 22 billion UAH in taxes to the state budget over the first nine months of 2025, which is 9.7 billion more than last year.
This was reported by Danilo Hetmancev, the head of the parliamentary committee on finance, tax, and customs policy. He stated that about half of this amount was provided by companies operating under the capital withdrawal tax (CWT) system.
"As of October 1, 2025, there are 2,721 companies registered in Diia.City, of which 1,046 have transitioned to the capital withdrawal tax (CWT). The share of such taxpayers continues to decline: in the first eight months of 2025, it dropped by 9 percentage points to 38.4%", the statement said.
From January to September 2025, Diia.City residents paid 22.0 billion UAH in taxes, including 11.0 billion UAH from CWT taxpayers. Compared to the previous year, revenues increased by 9.7 billion UAH, including 5.2 billion UAH from CWT taxpayers, he reported.
Corporate income tax amounted to 3.4 billion UAH, including 1.0 billion UAH from CWT taxpayers (an increase from 2024 of +0.7 billion UAH, of which +0.26 billion UAH from CWT taxpayers). VAT totaled 7.3 billion UAH, of which 3.8 billion UAH came from CWT taxpayers (an increase from 2024 of +2.5 billion UAH, with +1.39 billion UAH from CWT taxpayers).
Personal income tax and military levy accounted for 11.3 billion UAH, including 6.2 billion UAH from CWT taxpayers (an increase from 2024 of +6.6 billion UAH, with +3.6 billion UAH from CWT taxpayers).
The VAT refund amount for Diia.City residents also increased – as of October 1, 2025, it stands at 1.9 billion UAH, of which 1.6 billion UAH was received by CWT taxpayers. This is 1.6 billion UAH more than last year, with 1.59 billion UAH attributable to CWT taxpayers.
"Analytics show that the Diia.City framework remains an effective tool for the development of the IT sector; however, the dynamics of companies transitioning to CWT indicate a need for further improvement of tax incentives," said Hetmancev.
"Despite the increase in overall revenues, the share of companies benefiting from the capital withdrawal tax is decreasing – this calls for an analysis of the causes and adaptation of the model to business needs," he noted.
"It is essential to ensure stability of the conditions for 25 years, as stipulated by legislation. Furthermore, tax and regulatory authorities should view Diia.City as a special regime for technology businesses, rather than as a source of tax risk," Hetmancev added.
