New model of taxation for IT companies: what does the Ministry of Digital Transformation suggest?
Oleksandr Borniakov, Deputy Minister of Digital Transformation, informed about the intention to change the taxation process for the IT industry. According to the proposal, the single tax for IT companies will amount to 4–7% of the turnover. In addition, the companies will become tax agents of their employees, as well as will pay a military fee. All these innovations actually mean the establishment of the fifth group of taxpayers.
“We propose to introduce a single tax for legal entities without limitation of turnover and to establish it at the level of 4-7%,” Borniakov said in his Facebook page. The Deputy Minister emphasizes that these innovations enable the establishment of an industry where fully-fledged transparent companies will operate, rather than 200 thousand legally not related sole proprietors.
The new regime will be applicable to companies that meet the following criteria:
- number of employees is more than 10;
- export share in revenue is more than 75%;
- share of salary fund in the cost of production is more than 75%;
- average salary is at least five minimum wages.
In the opinion of the team of the Ministry of Digital Transformation, the implementation of the above-mentioned proposal will make the IT industry more attractive for investments; will create equal competitive conditions as well as an opportunity to export other services. At the same time, the proposed model will preserve the mechanism of social guarantees for employees and will not increase the tax burden.
The initiatives are made public for review, discussion, and preparation of proposals.
The article was prepared on the basis of the following materials: https://bit.ly/39N6L1f