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Business meets with the Deputy Minister of Digital Transformation of Ukraine for IT development

04/ 03/ 2020
    Yesterday, March 3, the business community met with Oleksandr Bornyakov, the Deputy Minister of Digital Transformation for IT Development. During the meeting, there was a discussion of plans for the development of the Ukrainian IT industry, the modernization of education to enhance the expertise and competitiveness of our graduates, immigration quotas for foreign IT professionals, digitalization of public services, approaches to the IT industry taxation and creation of a cryptocurrency market in Ukraine. Thus, one of the main strategic goals of the Ministry of Digital Transformation is to double the export revenue and the number of IT professionals involved in the information technology industry. The Deputy Minister pointed out that one of the main ways to stimulate IT is to develop a higher education system because the demand for specialists is much higher than the number of professionals on the market. Some ideas mentioned are the following: to reduce the duration of tuition to 2 years, so the acquired knowledge remains valuable and in line with the world trends; to change outdated and irrelevant classifier of specializations;  to put one or more universities at the disposal of IT companies to make IT education more practical as an experiment. However, to launch such an initiative, it is first necessary to implement the Law on Private-Public Partnership. Another way to overcome the shortage of IT professionals is to introduce an immigration quota for 5,000 IT professionals. According to the Deputy Minister, this initiative should have been operating since March this year, however, the corresponding resolution of the CMU is still being adjusted. Thus, when the resolution is published, foreigners will be able to stay in Ukraine for ten years and immigrate with their family by quota. In the proposed test mode, the quota is planned to be allocated among the largest cities of Ukraine. It is expected that by the end of the week, the business will be able to see the final text of the document. Regarding the implementation of the administrative e-services, the DIIA portal and application are being actively developed and improved, so the public services will be fully digitalized in the future. Since December, the e-Maliatko program has been successfully implemented in nine cities of Ukraine, also there is a possibility to open/ close a Sole Proprietorship in beta mode. Also, the issue of establishing tax options for IT companies was raised. Thus, it is planned to create a separate group of simplified taxation for IT - sole proprietorship 5, with a gradual increase in tax rates up to 10% and the eliminated risk of recharacterizing contractual relations into labour ones. As for product companies, it is planned to introduce IP Box with tax benefits up to 80% to stimulate their development. Also, a draft law is being developed to regulate the cryptocurrency market and enable its full operation in Ukraine. It is expected that the business will be able to see the first draft within three weeks, and the final draft is planned to be ready by June this year. The European Business Association is grateful for the meeting and looks forward to a fruitful dialogue!
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Yesterday, March 3, the business community met with Oleksandr Bornyakov, the Deputy Minister of Digital Transformation for IT Development.

During the meeting, there was a discussion of plans for the development of the Ukrainian IT industry, the modernization of education to enhance the expertise and competitiveness of our graduates, immigration quotas for foreign IT professionals, digitalization of public services, approaches to the IT industry taxation and creation of a cryptocurrency market in Ukraine.

Thus, one of the main strategic goals of the Ministry of Digital Transformation is to double the export revenue and the number of IT professionals involved in the information technology industry.

The Deputy Minister pointed out that one of the main ways to stimulate IT is to develop a higher education system because the demand for specialists is much higher than the number of professionals on the market. Some ideas mentioned are the following:

  • to reduce the duration of tuition to 2 years, so the acquired knowledge remains valuable and in line with the world trends;
  • to change outdated and irrelevant classifier of specializations; 
  • to put one or more universities at the disposal of IT companies to make IT education more practical as an experiment. However, to launch such an initiative, it is first necessary to implement the Law on Private-Public Partnership.

Another way to overcome the shortage of IT professionals is to introduce an immigration quota for 5,000 IT professionals. According to the Deputy Minister, this initiative should have been operating since March this year, however, the corresponding resolution of the CMU is still being adjusted. Thus, when the resolution is published, foreigners will be able to stay in Ukraine for ten years and immigrate with their family by quota. In the proposed “test” mode, the quota is planned to be allocated among the largest cities of Ukraine. It is expected that by the end of the week, the business will be able to see the final text of the document.

Regarding the implementation of the administrative e-services, the DIIA portal and application are being actively developed and improved, so the public services will be fully digitalized in the future. Since December, the e-Maliatko program has been successfully implemented in nine cities of Ukraine, also there is a possibility to open/ close a Sole Proprietorship in beta mode.

Also, the issue of establishing tax options for IT companies was raised. Thus, it is planned to create a separate group of simplified taxation for IT – sole proprietorship 5, with a gradual increase in tax rates up to 10% and the eliminated risk of recharacterizing contractual relations into labour ones. As for product companies, it is planned to introduce IP Box with tax benefits up to 80% to stimulate their development.

Also, a draft law is being developed to regulate the cryptocurrency market and enable its full operation in Ukraine. It is expected that the business will be able to see the first draft within three weeks, and the final draft is planned to be ready by June this year.

The European Business Association is grateful for the meeting and looks forward to a fruitful dialogue!

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