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Diia City: A Review of the Impact of Reforms on the Ukrainian IT Sector |
Diia City, a special legal framework for the Ukrainian IT sector, aims to better realign incentives towards supporting the process of moving up the value chain. The reforms broadly align with the government’s ambitions for increasing the value-added output of the IT sector.
Faced with a precarious fiscal outlook, IMF concerns centre around a potential decline in government tax revenues following implementation of the reforms. Modelling suggests that Diia City reforms will have a modest impact on government finances, confirms there is little-to-no risk of budget revenue loss, and strong probability of boost tax revenues under the right circumstances.
The report “A Review of the Impact of Reforms on the Ukrainian IT Sector” was worked out by the Oxford Economics in collaboration with StrategEast and International Tax and Investment Center.
