The President of Ukraine has sent to the Parliament of Ukraine his proposals on the Law on the state support of software production development and to amend the Tax Code with respect to taxation of the software products companies.

Moreover, the President finds it necessary to introduce the definition of the "software products" into the Tax Code.

In addition, the law amending the Tax Code provides reduction from 1 January, 2013 to January 1, 2023 the tax rate on personal income from the current 15-17% to 5%. According to the President, this provision contradicts the Constitution, under which the citizens are equal before the law.

Also, the law provides to exempt, from January 1, 2013 to January 1, 2023, the supply of software products from VAT.

The President noted that among the economic activities that are exempted from VAT, there are those, such as consulting on information, activities of computer facilities management, publication of information over the Web, as well as related activities.


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