Porto-Franco City

Over the past nine months, Ukrainian IT companies operating under the "Diia.City" framework have contributed 22 billion hryvnias in taxes to the state budget, which is 9.7 billion more than last year.
This information was announced by the head of the parliamentary committee on finance, tax, and customs policy, Danilo Hetmantsev. He noted that a significant portion of this amount came from companies utilizing the tax on withdrawn capital (TWC) system.

"As of October 1, 2025, there are 2,721 companies registered in Diia.City, of which 1,046 have switched to the tax on withdrawn capital (TWC). The share of such taxpayers continues to decline, having dropped by 9 percentage points to 38.4% over the past eight months of 2025," the statement reads.

From January to September 2025, Diia.City residents paid 22.0 billion UAH in taxes to the budget, of which 11.0 billion UAH came from TWC taxpayers. Compared to last year, revenues increased by 9.7 billion UAH, including +5.2 billion UAH from TWC taxpayers, he reported.

The profit tax amounted to 3.4 billion UAH, of which 1.0 billion UAH was from TWC taxpayers (an increase compared to 2024 of +0.7 billion UAH, of which +0.26 billion UAH was from TWC taxpayers). VAT was 7.3 billion UAH, including 3.8 billion UAH from TWC taxpayers (an increase compared to 2024 of +2.5 billion UAH, of which +1.39 billion UAH was from TWC taxpayers).

PIT and military tax totaled 11.3 billion UAH, of which 6.2 billion UAH was from TWC taxpayers (an increase compared to 2024 of +6.6 billion UAH, of which +3.6 billion UAH was from TWC taxpayers).

The amount of VAT refunds for Diia.City residents has also increased – as of October 1, 2025, it stands at 1.9 billion UAH, of which 1.6 billion UAH was received by TWC taxpayers. This is 1.6 billion UAH more than last year, with +1.59 billion UAH attributed to TWC taxpayers.

"Analytics show that the Diia.City regime remains an effective tool for the development of the IT sector, but the dynamics of companies switching to TWC indicate a need for further improvement of tax incentives," Hetmantsev asserted.

"Despite the overall revenue growth, the share of companies benefiting from the tax on withdrawn capital is decreasing – this signals the need to analyze the reasons and adapt the model to business needs," he noted.

"It is crucial to ensure stability of conditions for 25 years as provided by legislation. Additionally, tax and regulatory authorities should view Diia.City as a special regime for tech business rather than a tax risk factor," Hetmantsev concluded.