Tax benefits for the IT industry in Ukraine: to whom, for what, and for what
Today, the Verkhovna Rada adopted a law that will reduce the tax burden on the Ukrainian IT industry. Unfortunately, tax rates were not as attractive as they were lobbied by representatives of the association "IT Ukraine". During the year, while the law was in the Verkhovna Rada and was coordinated with the relevant ministries, the benefits in it decreased.
What today took the Verkhovna Rada. The Law “On Amendments to Section XX“ Transitional Provisions ”of the Tax Code of Ukraine regarding the specifics of taxation of subjects of the software industry”.
To take advantage of the benefits, the company must obtain a certificate of registration as a subject, apply the features of taxation, in the tax for their location.
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Companies that over the past 4 quarters met all these criteria:
1. Revenues from the production of IT products or the provision of IT services (see below for IT services and IT products) accounted for at least 70% of the company's gross income.
2. The cost of fixed assets and intangible assets exceeds 50 minimum wages. That is, now it is about 7 55 thousand UAH. (MW = 1094 UAH.).
3. The company has no tax debts.
4. There is no court decision recognizing the company as bankrupt.
For newly created companies that exist for at least 2 quarters, the indicator of economic activity for the period of the subject’s actual activity is applied.
1. production, sale or rental of software, its translation or adaptation.
2. all types of programming (coding, modification, testing), technical support, software documentation, software settings
3. consultations on the issues of informatization, planning and development of computer systems, advising on the types and configuration of computer hardware, analyzing information needs of users and finding the best solutions, advising on the creation of software products, and so on
4. computer equipment management activities, including the provision of local government services and customer computer systems activities.
5. creation and implementation of information technology complexes, systems and networks, software installation, development of cryptographic information protection tools.
6. data processing, placement of information on websites and related activities, including activities related to working with databases.
1. For 10 years (from January 1, 2013 until January 1, 2023), operations on the provision of software products created as a result of economic activity are exempted from taxation (see the list of types of activity above in “Types of IT- goods and IT services ").
2. Corporate income tax is reduced to 16%.
3. The tax rate on personal income will be 5%.
via Watcher
What today took the Verkhovna Rada. The Law “On Amendments to Section XX“ Transitional Provisions ”of the Tax Code of Ukraine regarding the specifics of taxation of subjects of the software industry”.
To take advantage of the benefits, the company must obtain a certificate of registration as a subject, apply the features of taxation, in the tax for their location.
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Whom do privileges apply
Companies that over the past 4 quarters met all these criteria:
1. Revenues from the production of IT products or the provision of IT services (see below for IT services and IT products) accounted for at least 70% of the company's gross income.
2. The cost of fixed assets and intangible assets exceeds 50 minimum wages. That is, now it is about 7 55 thousand UAH. (MW = 1094 UAH.).
3. The company has no tax debts.
4. There is no court decision recognizing the company as bankrupt.
For newly created companies that exist for at least 2 quarters, the indicator of economic activity for the period of the subject’s actual activity is applied.
Types of IT goods and IT services
1. production, sale or rental of software, its translation or adaptation.
2. all types of programming (coding, modification, testing), technical support, software documentation, software settings
3. consultations on the issues of informatization, planning and development of computer systems, advising on the types and configuration of computer hardware, analyzing information needs of users and finding the best solutions, advising on the creation of software products, and so on
4. computer equipment management activities, including the provision of local government services and customer computer systems activities.
5. creation and implementation of information technology complexes, systems and networks, software installation, development of cryptographic information protection tools.
6. data processing, placement of information on websites and related activities, including activities related to working with databases.
What are the benefits?
1. For 10 years (from January 1, 2013 until January 1, 2023), operations on the provision of software products created as a result of economic activity are exempted from taxation (see the list of types of activity above in “Types of IT- goods and IT services ").
2. Corporate income tax is reduced to 16%.
3. The tax rate on personal income will be 5%.
via Watcher
Source: https://habr.com/ru/post/284734/
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