IT companies that work in Ukraine will be exempt from value added tax (VAT) for 10 years starting from 2013, Ukrainian President Viktor Yanukovych has said.

"Software companies will be exempt from VAT for 10 years starting from 2013," he said at the Indian-Ukrainian Business Forum in Bangalore on Wednesday.

The president stressed that India and Ukraine have mutual interest in active cooperation in the IT sphere.

In particular, Yanukovych said that India's Silicon Valley could combine its experience with Ukraine's scientific and technical potential in order to achieve significant economic results.

"Ukraine has necessary resources and conditions for creation of a competitive IT market," the president said.

Yanukovych added that Ukraine has 20 educational establishments that train best specialists in the sphere.

The Ukrainian president is on a state visit to India on December 9-12.



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