The European Union’s Creative Europe program will continue to support Ukraine’s culture and creative industries sector in 2025, the Ministry of Culture and Strategic Communications reports.
“Ukrainian audiovisual projects have the opportunity to take full part in the competitions of the Media subprogram, which aims to support the European film and audiovisual industries and to develop, distribute and promote European works, taking into account the modern digital environment,” the ministry said in a statement.
It is noted that six such competitions have been announced, namely: European co-development; video game and immersive content development; television and online content; talent and skills development; 360° media; innovative tools and business models.
According to the announcement, grant applications can be submitted from October 1, 2024.
“The total amount of funding for projects that will receive grants under the above competitions is EUR 81.5 million. The total budget of the EU’s Creative Europe program in accordance with the Annual Work Program 2025 is EUR 340 million,” the agency added.
It is planned to build an IT campus for representatives of creative industries in Lviv region, Artem Honcharenko, President of the International Technology Transfer Association (ITTA) and the Fund for Reconstruction and Development of Ukraine, has said.
“Currently, we are implementing such a project, we have found a site in Lviv region. The legal process will begin soon. We plan to build the first campuses during the summer, where it will be possible to attract foreign partners and IT specialists, creative industries, youth to create a platform for discussion and start-ups,” Honcharenko said during a press conference at Interfax-Ukraine on Thursday.
He clarified that there are already agreements on the allocation of a land plot in Lviv region with an area of 8 hectares. The project provides for construction of campuses no more than five floors, the total area of spaces will be 10,000 square meters.
According to Honcharenko, the campuses of the town will be able to host up to 1,000 participants, and construction of places of temporary residence is also envisaged. In addition, a rehabilitation center as part of the technology park will be designed for 500-600 people.
Previously, the creation of such towns was planned in Kyiv region, Kharkiv, Odesa, and Lviv.
“We postponed construction of such a center in Kharkiv to the post-war period. We will start talking with local authorities about what needs to be taken into account for construction of such a town of creative industries in terms of restoring the city,” the ITTA president said.
“We would like to create not only a place for communication, but also, perhaps, with flexible taxation conditions, with the possibility of entering international markets,” he stressed.
The Ukrainian non-profit organization International Technology Transfer Association (https://itta.org.ua/) was founded in 2020, its activities include software development, development of the IT sector in Ukraine. In April 2022, ITTA co-initiated the creation of a charitable foundation for Reconstruction and Development of Ukraine to organize and deliver humanitarian aid to Ukraine.
BUILD, CREATIVE INDUSTRIES, HONCHARENKO, IT CAMPUS, LVIV REGION
Design, IT, advertising, marketing and PR saw the largest growth in the declared income in 2020 among creative industries, according to the Ministry of Culture and Information Policy.
“The Ministry of Culture and Information Policy of Ukraine, together with the team of Kyiv School of Economics and with the support of the USAID Competitive Economy Program in Ukraine, prepared a study on the volume of tax revenues to the consolidated budget of Ukraine and the payment of a single contribution by business entities in the field of creative industries in 2019 and 2020,” the ministry’s press service said.
It is noted that in 2020 the declared income fell more compared to the previous year in the performance sector (less by 17%), audiovisual sector (less by 8%), book publishing, libraries and museums (less by 3% each).
“The fall in VAT, which indicates a decrease in the volume of sales of goods and services, in some sectors reached 50% compared to 2019: theater and concert activities [less by 53%], film screenings [less by 45%], the operation of theater and concert halls and activities to support them [less by 42-43%], activities in the field of television broadcasting [less by 38%], and the functioning of museums [less by 35%],” the report said.
The following sectors showed the largest growth in the declared volume of income in 2020: design (more by 31%), IT (more by 26%), advertising, marketing, and PR (more by 5%).
“Despite the quarantine measures, registration of new businesses did not stop in 2020. Since the growth in tax revenues occurred faster than the growth in the number of business entities, this may indirectly indicate an increase in the tax burden,” the ministry said.
Ukrainian enterprises operating in the field of hospitality and creative industries lost more than UAH 83 billion in the nine months of 2020 due to the coronavirus pandemic, Kyrylo Kryvolap, the coordinator of the working group on the development of the National Economic Strategy until 2030, has said.
“These are actually the numbers that make up our GDP losses last year due to the impact of the coronavirus crisis,” Kryvolap said during a public discussion of the draft National Economic Strategy 2030.
He also clarified that in one weekend, the losses of these industries can be up to UAH 1-1.5 million.
“In this sector, there may be about 100,000 jobs at risk, including 50,000 self-employed,” the economist said.
Kryvolap also added that the recovery of these industries is slow due to the migration of labor to other, more secure areas.
The Verkhovna Rada intends to amend the Tax Code of Ukraine to support culture, tourism and creative industries.
Some 273 MPs voted in favor of bill No. 3851 at first reading.
According to an explanatory note to the bill, the document proposes to introduce tax mechanisms to provide state support to the spheres of culture, tourism and creative industries in order to prevent their stagnation, preserve and create new jobs.
The bill, in particular, proposes not to tax corporate profits, income of individuals, and a single income tax in the form of a cultural grant.
According to the bill, a cultural grant means “targeted assistance in the form of funds or property, which are provided on a free and irrevocable basis at the expense of the national and/or local budgets, international technical assistance for the implementation of a project or a program in the fields of culture, tourism and creative industries.
In addition, in terms of value added tax, it is proposed not to tax operations on import into the customs territory of Ukraine (import of goods) that are part of the national cinematic heritage.
It is also proposed not to tax certain operations for the supply of national films until January 1, 2025, and from January 1, 2023 to January 1, 2025, not to tax operations on the supply of services for the demonstration, distribution and screening of national films and foreign films that are dubbed, voiced in the state language on the territory of Ukraine, provided that such films are adapted, in accordance with the legislation, in the Ukrainian language version for persons with visual and hearing impairments.
BENEFITS, CREATIVE INDUSTRIES, CULTURE, SUPPORT, TAX, TOURISM
