The appeal of business associations to the President of Ukraine to support the IT industry28 Aug 2020

Ukrainian venture capital and private equity association together with profile business associations officiallyapplied to The President of Ukraine with the proposals for the support and development of the Ukrainian IT industryin current realities.

In the circumstance of economic crises, its consequences for the IT sector, changes in the conditions of itsoperation, taxation regime, could have a negative influence on the development of IT, attraction of investments,appearance of the new R&D offices, and workplaces in Ukraine.

Business associations offered the following proposals that will have a positive impact on the development of the ITsector and the Ukrainian economy:

  • provide for the declarative principle of joining the special legal regime for the IT industry, as well as ensure transparency and predictability of legal regulation, prevent an increase in the regulatory burden or the creation of additional regulators in the IT industry;
  • guarantee the invariability of tax rates and fees when using a simplified taxation system in the IT industry;
  • provide for individuals, who are employed at IT companies, the possibility of applying the personal income tax rate of 5 percent and a single social contribution of 1 minimum wage;
  • establish a special legal regime for 15 years, and clear conditions for automatic prolongation of the regime;
  • guarantee the IT companies the possibility to freely and equally choose the forms of cooperation with IT specialists: based on concluding agreements with FOPs or by hiring IT specialists based on the employment contract;
  • ensure the possibility of using a special contractual form of relations between IT companies in and their employees, which will be more flexible than that provided by current labor legislation;
  • strengthen the protection of IT business in the legislative context from potentially illegal actions of law enforcement agencies and promote the protection of property rights;
  • simplify the procedures for obtaining immigration permits to Ukraine for foreign IT specialists;
  • develop mechanisms of public-private partnership in the field of education, the formation of the state demand for new graduates in the IT industry, as well as to ensure the improvement of the quality of education in the IT industry.

We hope the government will listen to the initiatives proposed by leading IT market players, and further fruitfulcooperation to develop the IT industry and economy, attract investments in the country.