CURRENT TRENDS OF THE IT INDUSTRY TAXATION SYSTEM IN UKRAINE

Abstract

Introduction. IT services are gradually introduced in all spheres of the world economy. In Ukraine, the IT industry has long occupied an important place in the domestic economy, having become significantly more active during the years of the strictest quarantine restrictions due to Covid-19. Today, the IT industry is developing and continues to support other sectors of the economy, even in the conditions of the Russian Federation's military aggression in Ukraine. The IT sphere as a priority branch of the domestic economy, recognized as such in Ukraine by the highest level officials, needs a favorable environment for its further development and a balanced tax policy. Purpose. The purpose of the article is to generalize and assess the current trends in the development of the IT industry taxation system in Ukraine, to provide recommendations for its improvement. Methods. In the course of the research, the authors used the dialectic approach as the main scientific principle of studying concepts about the IT industry, the method of observation, economic analysis, statistical, the method of comparison and generalization, deduction and induction. Results. The main tax changes in recent years for the IT sector are the provision, in accordance with the government's decisions, of the right to switch to paying a single tax of group 3 at a preferential rate of 2% of total income to subjects of the general and simplified taxation systems for the period of martial law, which made it possible to counteract the negative the impact of war. Completion of the VAT exemption period for the supply of software products in the customs territory of Ukraine from January 1, 2023, which led to an increase in the expenses of IT companies and the cost of their products. The introduction of the Diya.City legal regime with special tax preferences for IT companies and their employees and clear requirements and criteria for acquiring its residency, which attracted the interest of many IT giants, but in the conditions of a certain decline in the global IT market, became inaccessible to small companies. Conclusion. Improvement of the national system of taxation of IT business requires taking into account the factors of its internationality, which need to be solved. It is also promising to further improve the legal regime of Diya.City in the direction of its expansion for other priority sectors of the economy and including VAT benefits in the Diya.City mechanism. To ensure the appropriate level of competitiveness of domestic IT services, it is important to promote the development of IT outsourcing, research public-private IT centers, the IT sphere in the public sector, e-commerce, startups and telecommunications services.