Round Table on the Development of IT sector in Ukraine: Information Technologies – Ukraine’s power reserve in new economic realities

The round table “Creation of favorable conditions for the IT industry development in Ukraine”, where the representatives of legislative and executive authorities, public organizations, leading Ukrainian companies took part, was held in Kiev on September 22. It was noted that Ukrainian IT industry was ranked the 5th among Central and Eastern European countries in the volume of software development services export. According to the expert estimations, the volume of IT market reached 12 billion hryvnia and the growth rate reached 30-40%. At the same time there is a range of factors restraining the development of IT industry such as shortcomings of legal base, tax, financial and investment politics. The session of round table was aimed to discuss the draft law “About the economic experiment to create the favorable conditions in Ukraine for the development of software industry” and “About introducing the changes to Ukrainian Tax Code regarding the economic experiment to create the favorable conditions in Ukraine for the development of software industry”. They provide for special scheme of tax payment and payments for business in IT industry, assistance in legalization. Particularly it is proposed to establish the income tax – 16%, single payment to general social insurance – 36.7% of the sum equal two minimum salaries multiplied to the number of workers, and other. The VAT exemption is also specified.  According to the law formers Ukrainian IT industry should receive all the conditions for successful competitiveness with other countries on equal terms. Ukrainian Hi-Tech Initiative also took active part in the round table. Victor Maznyuk, President of Ukrainian Hi-Tech Initiative, noted, “Being the leader in the CEE region by the volume of IT outsourcing services export, Ukrainian IT industry is still rapidly developing. The proposed draft laws will allow creating the effective and successful public policy that will promote the development of the industry and IT businesses”. The round table discussion resulted in unanimity of all participants regarding the draft laws, and the decision to address the committees of Verkhovna Rada of Ukraine, President Administraton of Ukraine, and Cabinet Council with the request to support these draft laws. The draft laws aimed at the encouragement of the Ukrainian IT industry development will be examined at the Parliament hearings on December, 14.