In January-June 2013, the IT-industry benefits were used by over 570 taxpayers. During the first six months of 2013, the IT industry used the benefits for over 50 million UAH, according to Oleksandr Klimenko, Minister of Revenue and Duties of Ukraine, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

"Clearly, this issue cannot be approached in terms how much the budget lost. I believe that, in this case, we rather gain, than lose, as the IT potential of our country is quite large. And, if now the budget is currently short 50 million UAH due to benefits, I'm sure that tomorrow these losses will be more than compensated by development of the sector," Klimenko said. 

Experts say the Laws "On state support of software industry" and "On specifics of taxation for subjects of software industry" granted Ukrainian programmers the tax benefits. Since Jan. 1, 2013, the income tax rate for IT industry was reduced to 5% (from 21%). Besides, development of software products became VAT exempt.

The government, which initiated granting benefits to programmers, believes that, for each year of preferential taxation, the number of jobs in IT sector will grow by 35-40% and growth rate of computer companies will reach 40-45% annually. The Cabinet of Ministers’ priority is to provide the national IT industry with one of the most favorable conditions in Eastern Europe, note the government analysts.

The Ukrainian IT sector is becoming one of the most investment attractive in the country which is due to potential of Ukraine and overall situation on the world market, note the experts.


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