Ukraine has introduced tax exemptions for the IT business, which will provide a quick upturn in the industry

 Verkhovna Rada (Ukrainian parliament) adopted a law granting significant tax benefits for the IT-sector in Ukraine, the effect of which will provide a breakthrough in the development of high technology.

“Today, Ukraine is ranked 5th in the world of exporting of software. The adopted law will provide an opportunity in the coming years, double the volume of Ukrainian exports of IT-services. The positive impact will feel the entire economy, "- said Vice Prime Minister Sergey Tigipko.

·                Corporate income tax will be reduced from 21% to 5% from the beginning of 2013

·                Personal income tax - from 15% to 5%

·                Value added tax - repealed (but only on the software, which will be developed by Ukrainians)

·                The period of exemptions is 10 years, only long term preferences can give the desired effect.

The initiators of the law have estimated that its enactment will increase the number of jobs (a third part of a year) and increase the competitiveness of Ukrainian IT-companies. After all, today in many countries, payroll taxes are much lower than in Ukraine (in India - 6%, in Brazil - 10%, Russia - 14%), which did not allow employers to pay to Ukrainians the same high wages.  And this led to an outflow of Ukrainian professionals abroad. Now the situation has changed dramatically, and Ukraine has all chances to strengthen its position in the global IT-industry.

The government is also preparing measures to promote the development of IT-sector in Ukraine. Thus, the Cabinet of Ministers of Ukraine is ready to increase the government procurement for learning in higher educational establishments.