Business news from Ukraine

UKRAINIAN PM PROPOSES SETTING UP FUND OF HUMAN CAPITAL DEVELOPMENT FOR IT SECTOR

Premier of Ukraine Oleksiy Honcharuk has proposed setting up Fund of Human Capital Development for IT sector to enable it manage sector on its own. “The problem in the lack of staff…We hope to establish conditions for the sector to work faster,” Honcharuk said during the meeting of the government with export IT industry in Kyiv on Wednesday.
According to the premier, the means of this fund will be forwarded for scholarships of talented students, grants for young scientists and the creation of educational infrastructure.
Head of State Tax Service Serhiy Verlanov reported that a special taxation option for individuals in IT sector should be introduced.
In addition to the 5% single tax, 1.5% military tax and unified social tax from two minimum wages, the head of the service suggests introducing a tax on the development of human capital. It will be administered by the tax service and transferred to sector managed-by fund, and its rate will be gradually raised from 1% in 2020 to 5% in 2024.
According to Verlanov, this taxation option will give more guarantees and advantages, however, the transition to it is voluntary, and those who wish can stay on today’s third form of simplified taxation.
The premier has said the government expects that this will allow in 10 years to increase the export of the IT from $3 billion up to $10 billion, the number of workers in this sphere of services will increase from 165,000 to 650,000 people.

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PM GROYSMAN: GROWTH OF IT SECTOR IN UKRAINE IN 2017 IS 20%

Ukrainian Prime Minister Volodymyr Groysman has said that the growth of the IT sector in Ukraine last year was 20%. He said that the similar growth is planned for this year. “In 2017, the IT industry brought $3.6 billion of export revenue to the country. The share of the IT sector of the country’s GDP is around 3.4%. As of early 2018, over 120,000 employees and engineers worked in the sector, and their number is permanently growing,” he wrote on Twitter on Tuesday. He also said that in May it is planned to hold a new ‘deregulation’ meeting of the Cabinet of Ministers: “We will continue annulling piles of unnecessary regulations and approve the required decisions, first of all, for the IT sector.”

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