A group of MPs has registered bill No. 4245 with amendments to the Budget Code on the electronic residency mechanism, which implies a preferential income tax rate of 5%, in the Verkhovna Rada.
According to the information on the parliamentary website, the bill was registered on October 21 by MPs from the Holos faction Yaroslav Zhelezniak, Volodymyr Tsabal, Kira Rudik and Halyna Vasylchenko, as well as MP from the Servant of the People Danylo Hetmantsev.
“The idea is simple. If you are an IT specialist from India, China, Pakistan, Germany, or even Belarus, then, being in your country, you can become an electronic resident, that is, an electronic taxpayer. And for this you will pay only one simple tax – 5%, which our sole proprietors pay from turnover,” Zhelezniak said.
According to him, this mechanism may be of interest, in particular, to citizens of Asian countries. On the other hand, this will allow attracting additional funds to the national budget, he said.
“This proposal may not be so interesting to the United States or the EU, but it will definitely be interesting to other countries, especially Asia, the East, which have not a better reputation and more complex tax legislation compared to the Ukrainian one,” Zhelezniak said.
President of Ukraine Volodymyr Zelensky calls for maintaining the tax rate for IT employees at 5%, the President’s Office website reports.
“This industry in the country is developing not due to the state support, but due to the intelligence of Ukrainians. One of the steps that the state can take is not to increase the tax burden on this industry,” the president said at a meeting with representatives of IT business in Lviv within a working trip to the region.
Zelensky noted that at present it is one of the few professions that can not only ensure a decent standard of living, but also reform the state and help combat corruption.
“It is with digital that we can implement any important reforms. And what everyone is saying: we need honest customs, honest law enforcement agencies, we need to overcome corruption – we all understand that the human factor is very difficult to fix. But digital and IT industry can do it,” the president said.
The President of the IT Ukraine association, Taras Kytsmey, added that the Ukrainian IT industry has prospects for development and maintaining such a tax rate will facilitate the influx of personnel from abroad and ensure the retention of talented professionals in Ukraine.