The initiative of Cabinet of ministers of Ukraine to make a new way of taxation in IT sphere by making a fee for developing people fund alarmed IT workers in whole country. The tax rate will raise from 1% in 2020 to 5% in 2024. (https://tech.liga.net/technology/novosti/u-premera-pridumali-novyy-nalog-dlya-aytishnikov, https://korrespondent.net/ukraine/4136111-v-kabmyne-prydumaly-novyi-naloh-dlia-aityshnykov )

Lawyers in Zilver Law firm answer on lots of IT companies and freelancers appeals that the Tax system is located in the Tax code of Ukraine. That’s why a new taxes can appear only by an amendments of the Tax code of Ukraine.( https://zakon.rada.gov.ua/laws/show/2755-17 ).

At this moment (September 5 , 2019) there is no new amendments in the IT taxation.

A Sole proprietors , who belong to the third group of simplified tax system(they don’t  pay  value-added tax (VAT)), have 5% tax rate of income. Also it is necessarily to pay the single social contribution (918,06 UAN per month) for this type of enterprise.

The closest amendments of the Tax code of Ukraine (https://zakon.rada.gov.ua/laws/show/2628-19) will come into force in January 2020, and they won`t apply to IT-workers taxation and other Sole proprietors with belong to the third group.

There is some ideas and bills about a new taxation for IT-workers, but today none of them are in force, they are stay only on the consideration phase.

Futhermore, in accordance with the current legislature all of new tax rates (systems) wit applies on a budget revenues should come into force until 15 july of year what preceded by year, when this tax rates will apply ( subparagraph 4.1.9 par. 4.1 article 4 of the Tax code of Ukraine, par.3 article 27 the Budget code of Ukraine)

There is no amendments in the current legislature for IT sphere and Sole proprietors( who belong to the third group of simplified tax system), that’s why it is no use talk about a new taxes or tax rates.

A leading lawyers of Zilver law firm (Kyiv,Ukraine) are pleased to provide IT workers( freelancers and IT companies)  law advice about  LTD and private (individual) entrepreneurs creation and taxation.

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