The Law of Ukraine "On Stimulating the Development of the Digital Economy in Ukraine" (hereinafter "the Law") takes effect and provides for the creation of a special regime called Diia City. This regime is created with the purpose of stimulating the development of the IT sector in Ukraine, which is related to the development of software (including the development of operational system and software applications), GameDev, user`s interface design, SaaS, cybersport, cybersecurity, website administration (including media websites), marketing and advertising services provided through the software, IT education and research etc.
Also, provisions regarding Non-Competition Agreement (NCA) are established as a form of contract between Diia City residents and employees or natural persons or individual entrepreneurs; and amendments are made to the relevant copyright law and laws on rights of individuals who have entered into gig-contracts with residents of Diia City.
The Law obviously has its advantages and disadvantages and raises many questions, in particular, regarding the loss of Diia City resident status, the procedure for the consideration of complaints by the appeal commission, regulating the provisions of gig-contracts, providing basic guarantees of labor rights for gig-specialists and others.
Upon your request, PwC Ukraine will be happy to provide advisory support on all issues related to the feasibility, benefits of acquiring Diia City resident status, and the legal risks associated with this status.
Managing Partner, Attorneys Association "PwC Legal in Ukraine"
Tel: +380 44 354 0404
Head of IP, IT & Data Protection, Attorneys Association "PwC Legal in Ukraine"
Tel: +380 44 354 04 04