The benefit, which exempted companies in the IT sector from paying VAT over the past 10 years and ceased to be valid on January 1, 2023, can be returned for residents of Diia.City, Deputy Minister of Digital Transformation for IT Development Oleksandr Borniakov has said.

"Now consultations are underway... We suggested that let's at least for the residents of Diia.City [we will extend the benefit]. This initiative came from IT associations, other players. They proposed this approach," Borniakov said in an interview with Interfax-Ukraine.

According to him, initially negotiations were held with the Ministry of Finance, the parliamentary committee on finance, tax and customs policy regarding the extension of benefits for all companies. "They refuse, citing the IMF, as well as the fact that, in their opinion, the budget is losing revenues that it could receive," the deputy minister said.

According to him, the Ministry of Digital Transformation supports both options: both the extension of the benefit only for residents of Diia.City, and its return for everyone.

Borniakov said that the benefit can only be returned through the adoption of a relevant law in the Verkhovna Rada.

According to the Ministry of Digital Transformation, Diia.City resident companies increased budget contributions by 18.4% in 2022 compared to 2021. "And it is despite the fact that the tax burden remains almost at the level of the simplified taxation system," Borniakov said.

He expressed confidence that Diia.City's tax system is the best in Europe today, and recalled that the law guarantees that it will not be tightened over the next 25 years.