Business news from Ukraine

UKRAINIAN IT INDUSTRY TO PAY UAH 10 BLN OF TAXES IN 2018

The IT industry of Ukraine will pay UAH 9-10 billion of taxes in 2018, according to a study of experts from IT Ukraine and Better Regulation Delivery Office (BRDO).
“In the first half of 2018, the amount of taxes paid by the Ukrainian IT industry increased by 30.1% and amounted to about UAH 5 billion. We predict that by the end of the year it will be UAH 9-10 billion, which will go both to the local budget and the country’s budget,” IT Ukraine said on its website, citing President of IT Ukraine, Managing director of GlobalLogic in Ukraine Ihor Beda.
IT Ukraine also said that, according to the State Fiscal Service, the amount of taxes paid by IT companies in 2014-2017 grew annually by an average of 27% and reached UAH 4.1 billion. In 2018, this trend continues.
A significant number of IT professionals collaborate with companies under contracts as individual entrepreneurs, independently paying the single social security tax. The volume of this tax, according to State Fiscal Service, amounted to UAH 3.2 billion in 2017.
According to a poll conducted as part of the survey, payment for the services of specialists is 80-85% of the costs of companies.
In addition, the importance of IT services in the structure of Ukrainian exports is growing rapidly.
“According to the results of the first half of 2018, IT services overtook pipeline transportation and became the second largest industry in the export of services – more than 20% of all exported services,” IT Ukraine said.
According to the survey of companies, revenues of the domestic IT business are predominantly of foreign origin – Ukrainian developers cooperate with the United States, the U.K., Germany, Canada, Israel, Sweden and Switzerland.
“If current conditions are maintained, the growth rate of the IT industry in the coming years will be 20-25%. But Ukraine’s potential in the field of IT products and services is much more… The growth of the industry by 25-30% is possible in the near future if the government and the state will focus on priority sectors and will start to solve urgent problems in a comprehensive manner,” Head of Epam Ukraine Yuriy Antoniuk said, being quoted in the IT Ukraine report.
He said that the pressing challenges of IT business in Ukraine are: employment of foreigners, the development of human capital and education, the elimination of obsolete legislative barriers, the development of the ecosystem and the creation of technology parks.

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FOOTBALL CLUB SHAKHTAR EARNS OVER UAH 1.7 BLN IN 2017 PAYS UAH 504 MLN IN TAXES

The total revenue of the Shakhtar Donetsk football club in the 2017-2018 season, including VAT, amounted to UAH 1.732 billion, the club said in its traditional annual report. The club’s total income in the previous season was UAH 877 million. In particular, income from the sale and rental of football players in the 2017-2018 season amounted to UAH 108 million, which is almost twice more than in the previous season.
However, the report does not reflect Brazilian Fred’s transfer to Manchester United in the summer off-season, which was a record amount in the club’s history. According to British media, 52 million pounds was paid for the player.
Club revenues from UEFA and FIFA amounted to UAH 888 million. This is UAH 600 million more than in the 2016-2017 season. Last season, Shakhtar successfully competed in the Champions League group stage and made it to the last 16, where it lost to Italy’s Roma.
FC Shakhtar’s revenues from commercial activities amounted to UAH 736 million.
In the 2017-2018 season, Shakhtar paid UAH 504.506 million in taxes to Ukraine’s state budget. Personal income tax amounted to UAH 358.85 million.

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