14:58 04.09.2019

Premier proposing IT-sector to set up its own Fund on Human Capital Development

2 min read
Premier proposing IT-sector to set up its own Fund on Human Capital Development

Premier of Ukraine Oleksiy Honcharuk has proposed setting up Fund of Human Capital Development for IT sector to enable it manage sector on its own.

"The problem in the lack of staff…We hope to establish conditions for the sector to work faster," Honcharuk said during the meeting of the government with export IT industry in Kyiv on Wednesday.

According to the premier, the means of this fund will be forwarded for scholarships of talented students, grants for young scientists and the creation of educational infrastructure.

Head of State Tax Service Serhiy Verlanov reported that a special taxation option for individuals in IT sector should be introduced.

In addition to the 5% single tax, 1.5% military tax and unified social tax from two minimum wages, the head of the service suggests introducing a tax on the development of human capital. It will be administered by the tax service and transferred to sector managed-by fund, and its rate will be gradually raised from 1% in 2020 to 5% in 2024.

According to Verlanov, this taxation option will give more guarantees and advantages, however, the transition to it is voluntary, and those who wish can stay on today's third form of simplified taxation.

The premier has said the government expects that this will allow in 10 years to increase the export of the IT from $3 billion up to $10 billion, the number of workers in this sphere of services will increase from 165,000 to 650,000 people.

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