Diia.City: a 5% tax regime, and what it does not cover
- INCOME TAX
- 5%
- PROFIT
- 9%
- RESIDENTS
- 4,685
In short. Diia.City is not a crypto licence, and treating it as one is the mistake worth avoiding. It is a tax and legal regime for technology companies, guaranteed by law for at least twenty-five years, which crypto teams in Ukraine use because the alternative does not exist yet: the bill that would regulate virtual assets passed its first reading in September 2025 and has not come back for a second.
- PERSONAL INCOME TAX
- 5%on salaries and gig contracts
- MILITARY LEVY
- 5%on the same income
- SOCIAL CONTRIBUTION
- 22%of the minimum wage, not of salary
- TAX ON WITHDRAWN CAPITAL
- 9%the alternative to profit tax
- CORPORATE PROFIT TAX
- 18%if the company chooses this route
- CRYPTO LICENCE
- Nonethe regime does not grant one
A tax regime, not a crypto one
The Law of Ukraine "On stimulating the development of the digital economy", No. 1667-IX, was signed on 15 July 2021 and came into force on 14 August 2021. It created Diia.City: a regime technology companies choose to enter, trading a set of conditions for a different tax treatment.
Nothing in it authorises a firm to hold client crypto, run an exchange or issue tokens. A resident that does those things is doing them in the same legal vacuum as a non-resident, with better tax treatment on its payroll.
The rates, line by line
A resident's employees and gig contractors pay 5% personal income tax rather than the standard 18%. The military levy runs at 5% on that income. The social contribution is 22% of the minimum wage per person rather than 22% of the actual salary, which is what makes the payroll arithmetic work for well-paid engineers.
At the company level there is a choice: 9% on withdrawn capital, charged when money leaves the company, or the ordinary 18% on profit. The first suits a business reinvesting most of what it earns.
The preferential rates apply from the calendar month after the one in which residency was granted, not from the day of the application.
Twenty-five years, written into the law
The regime is established for no less than twenty-five years from the date the first resident was entered in the register. That guarantee is unusual and it is the reason companies treat the arithmetic above as planning data rather than as this year's rate.
The register has passed four and a half thousand residents.
What is still missing
Ukraine has no law on virtual assets in force. Draft 10225-д passed its first reading on 3 September 2025 and, through 2026, has not returned to the chamber for a second. Until it does, income from crypto for an individual is taxed under the general rules, at 18% personal income tax and the military levy on top, and a business holding client assets has no licensing route to follow.
That gap is the whole reason Diia.City appears in a list of licensing regimes at all. It is what Ukrainian crypto teams use while waiting, and knowing what it does not cover matters as much as knowing what it does.
What it costs
| What is taxed | Rate | Note |
|---|---|---|
| Salary of a resident's employee | 5% | personal income tax |
| Gig contract payment | 5% | personal income tax |
| The same income | 5% | military levy |
| Social contribution | 22% | of the minimum wage, per person |
| Withdrawn capital | 9% | instead of profit tax |
| Corporate profit | 18% | the alternative route |
How an application runs
- 1Register a Ukrainian company carrying on one of the qualifying activities the regime lists.
- 2Meet the entry conditions on average pay and headcount that the law sets for residents.
- 3Apply through the Ministry of Digital Transformation and enter the public register of residents.
- 4Start the regime from the calendar month after the one in which the status was granted.
- 5Keep meeting the conditions: falling below them ends the preferential treatment.
Timeline
Parliament's law No. 1667-IX is signed into force.
The law takes effect and the Diia.City regime begins.
The virtual assets bill 10225-д passes its first reading.
The bill has not returned for a second reading.
The register passes 4,685 residents.
Questions
Is Diia.City a crypto licence?
No. It is a tax and legal regime for technology companies, and it authorises no crypto-asset services.
What does a resident's employee pay?
5% personal income tax and a 5% military levy, with the social contribution at 22% of the minimum wage.
What does the company pay?
Either 9% on withdrawn capital or 18% on profit, whichever route it chooses.
How long is the regime guaranteed?
No less than twenty-five years from the date the first resident entered the register.
How is crypto taxed in Ukraine meanwhile?
Under the general rules, since no law on virtual assets is in force: 18% personal income tax plus the military levy.
Sources
Updated 08.10.2026 · this is reference material, not legal advice