Action City tools will help increase the share of IT in GDP – experts
The introduction of a special legal and tax regime at the beginning of this year, Action City, will help increase the share of IT in the country’s GDP due to low taxation, which will bring the industry out of the shadows. This opinion was expressed by Deputy Governor of Dnipropetrovsk region for digital development Ivan Nachovny in the material of the Informant,
Ukraine , Ukraingate , 17 , January , 2022 | Economy
Due to low taxation, the program (Action City – ed.) Will bring IT business out of the shadows, thus attracting new taxpayers. That is, if you have 10 entrepreneurs and only one pays tax, you have a share of 1 10. And if your tax contribution changes, and you see all ten, then, accordingly, GDP grows because their number has changed, “- said in a statement referring to Ivan Nachovny.
Eugene Gostishchev, CEO of IT Dnipro Community, also believes that transparent legislation, which is the legal basis for the special regime, will help the IT industry increase its share in GDP. At the same time, in his opinion, an important factor in the success of the project will be the amount of investment, which will affect the dynamics of the IT market.
He also called the company’s tax system operating within Action City an “attractive opportunity.” In particular, residents will be offered a choice of withholding tax (9%) or income tax (18%).
Experts also positively evaluate another Innovation City innovation – the introduction of a new form of cooperation between developers and IT companies – gig contracts.
Today this format is used by a number of progressive countries interested in the development of creative industries: IT, consulting, design, engineering, etc. The gig model provides maximum flexibility in terms of cooperation between the company and the specialist, work remotely and on a flexible schedule, combine cooperation with several companies or projects at once, ”said Yuriy Antonyuk, EPAM’s Head of Central and Eastern Europe.
It will be recalled that at the beginning of this year Ukraine will introduce Action City – a special regime that provides a set of incentives for IT, including: low tax rates, tax and legal instruments to attract investment, a flexible form of cooperation between IT companies and professionals.
Source: Ukrgate
