The first unicorn company in Ukraine became a resident of “Diia.City”. What does this mean

The first Ukrainian unicorn company — an online platform based on artificial intelligence Grammarly — became a resident of “Diia.City”.

This was reported by the Ministry of Digital Transformation of Ukraine.

Grammarly is an AI assistant for improving English communication. According to the Ministry of Finance, more than 30 million people, 70 thousand business teams and 3 thousand educational institutions around the world use the platform every day.

"At Diia.City, Grammarly will enjoy the most favourable tax conditions and a transparent legal system for development and stable work in Ukraine. Residency in the space will also add flexibility in the employment of people through GIG contracts or under the terms of an employment contract," the ministry said in a statement.

The Ukrainian unicorn Grammarly entered the list of the most influential companies according to TIME and the Cloud 100 rating by Forbes, which marks the leading companies in the field of cloud technologies.

Grammarly co-founders Maksym Lytvyn and Oleksiy Shevchenko were ranked second and third in the list of the richest Ukrainians in 2022. Their fortunes were $2.3 billion each. And the business publication Fast Company included Grammarly for the third time in the list of the most innovative AI companies in the world.

More about "Diia.City"

"Diia.City" is a special legal regime for the IT industry. Its goal is to create in Ukraine the most powerful IT hub in Central and Eastern Europe.

The main principles of "Diia.City" are voluntary entry, freedom of activity (all residents can independently choose forms of cooperation with third parties), non-interference of the state and the presumption of legality of residentsʼ activities, stability (a special regime is introduced for at least 25 years), extraterritoriality — the regime is in effect throughout the country.

The main conditions of the "Diia.City" regime:

• payroll taxes: personal income tax — 5%, 22% from the minimum wage, 1.5% military levy;
• corporate taxes: 9% — CWT or 18% income tax;
• 0% on the income of individuals as dividends, if they are paid no more than once every 2 years;
• tax discount (from personal income tax) on the amount of investments in Ukrainian startups.

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