Conflict of interest: Ministry of Finance against benefits of “Diya.Siti”
The Ministry of Finance of Ukraine disagrees with preferential taxation for residents of "Diya.Sity" , which could lead to a revision of conditions for the IT sector and a potential outflow of investment.
Tax disagreements
Position of the Ministry of Finance
While the Ministry of Digital Transformation is actively promoting the Diya.City project, the Ministry of Finance seems to intend to create obstacles to its implementation. In particular, the head of the Ministry of Finance of Ukraine Sergei Marchenko opposes the idea of preferential tax regimes, including “Diya.Siti”.
Arguments of the Minister
At the “New Country” event, Sergei Marchenko spoke about the injustice of the system: “Some pay from 10,000 UAH "All taxes, and others with $5,000 or $10,000 pay nothing, thinking it's normal because they supposedly have super intelligence... We strive to balance this system."
The Minister emphasized that the Ministry of Finance continues to have a negative attitude towards tax benefits. However, if the issue receives political support, it passes. “At a government meeting, this issue was heatedly discussed, and, unfortunately, only my voice spoke of justice,” the minister added.
Prospects and consequences
Despite criticism, Marchenko admitted that the state created these preferential rules, and in the future it may bring positive results. “At the moment, the state does not receive any special benefits from this system. But in the future they may appear,” the head of the Ministry of Finance noted.
Contribution of "Diya.City" to the budget
It is worth noting that for the first half of 2024, residents of "Diya.City" "sent more than 8.4 billion UAH to the Ukrainian budget, which is almost equal to the amount for the entire 2023.
Reaction of the IT community
Leading associations of the IT industry of Ukraine expressed concern about a possible increase in taxes for residents of "Diya.City" ". They fear this could lead to investment drain and displacement of businesses. Industry representatives criticized bill No. 11416-d, which provides for an increase in military taxes to 5%, which violates previously guaranteed tax conditions. The Verkhovna Rada has already supported the tax increase in the first reading.
Glossary
- Diya.City - a special legal regime for IT companies in Ukraine
- Ministry of Digital Development - Ministry of Digital Transformation of Ukraine
- Ministry of Finance - Ministry of Finance of Ukraine
- Verkhovna Rada of Ukraine - the Verkhovna Rada of Ukraine, the country's parliament
- IT industry - information technology sector
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Answers to questions
What is the position of the Ministry of Finance of Ukraine regarding preferential tax regimes ?
What arguments does the Minister of Finance give against preferential tax regimes?
What are the performance results of the residents of 'Diya.City' for the first half of 2024?
What concerns do representatives of the IT industry in Ukraine express?
What tax changes are proposed by Bill No. 11416-d?
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Discussion of the topic – Conflict of interest: Ministry of Finance against benefits of “Diya.Siti”
Minister of Finance of Ukraine Sergei Marchenko opposes the preferential tax regime for the “Diya.City” project, which could create obstacles to its implementation, despite the active support from the Ministry of Digital Development.
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Alessia
Wow, interesting news! 🤔 It seems that the Ministry of Finance is not very happy with the benefits of Diya.City. But isn’t this the essence of stimulating the IT sector? Attract investment and talent? What do you think?
Pierre
I agree with you, Alessia. Benefits are the key to industry development. Without them, we risk losing our competitive advantage. Already 8.4 billion UAH to the budget in six months - isn’t this an indicator of success? 💰
Hans
Yes, but we must not forget about balance. Marchenko is right that we need fairness in taxation. Maybe it’s worth finding a middle ground between benefits and general rules? 🤷♂️
Sofia
Interesting thoughts, guys! But I’m wondering whether the increase in military duty will lead to a mass exodus of IT specialists? This is a blow to the entire industry! 😱
George
Ugh, these newfangled things again! Diya.City, benefits, investments... We used to live without this and it was normal. All these IT specialists are just thinking about how to avoid paying taxes. Let them work like everyone else! 😤
Pierre
George, but the world is changing! The IT sector is the future of the economy. Without support, we risk falling behind other countries. You need to think about the long term. 🌍
Alessia
I agree with Pierre. In addition, IT companies create jobs and pay high salaries. This is good for the economy as a whole, isn't it? 💼
Hans
Maybe you should think about temporary benefits? Let the industry develop, and then gradually equalize the tax burden. So the wolves are fed, and the sheep are safe. 🐺🐑