In order to support the development of the information technology sector and stimulate the creation of new jobs on July 22, 2019, the National Assembly adopted the Law “On State Support of Information Technology”, “On Additions to the Law “Оn Profit Tax”” and “On Additions to the Law Оn Income Tax””.
According to the laws, starting on September 1, 2019, companies operating in the information sector will be granted privileges in two ways. The first relates to public assistance programs and includes investment programs, grants and technical assistance, and the second is tax privileges.Specifically, organizations operating in the field, up to January 1, 2029 will be exempted from profit tax, and the income tax will be calculated at 5%.
In order to take advantage of the privilege, companies must receive a certificate to be provided by a government commission set up to meet the requirements of the law.