Ukraine Extends Tax Privileges For IT Sector

Acknowledging the importance of the IT sector in Ukraine's economy, the government has provided tax breaks to qualified companies and individuals in the IT sector that fall under the category of "subjects of the software product industry". From the period of January 1, 2013 until January 1, 2023, qualified IT companies and individuals are subject to a reduced profit tax rate of only 5%, provided they maintain a separate accounting of income and expenses of their activity in this sphere.

In order to qualify for the tax benefits, IT companies and individuals must meet the following criteria over the previous four tax quarters:

1. The proportion of income from qualified IT activity must be no less than 70 percent of the income from all types of activity involving the sale of goods, performance of works and provision of services;