Export of Ukrainian IT increased by 30% during 2019

Export of Ukrainian IT increased by 30% during 2019

According to the data on balance of payments in Ukraine for 2019, export of computer services increased by 30.2% as compared to the previous year and totaled USD 4.17 billion. Accordingly, the amount of taxes and fees paid to the state budget of Ukraine increased by 28%, up to UAH 16.7 billion.

Ukrainian information technology industry continues its rapid growth. In 2019, total amount of fiscal charges and unified social tax paid by IT companies was UAH 16.7 billion as compared to
UAH 13 billion in 2018. For example:

  • Export of computer services constitutes USD 4.7 billion, which exceeds income from wheat exports (USD 3.65 billion)
  • UAH 16.7 billion is one third (32%) of the state budgetary expenditures of Ukraine on education in 2019, or nearly half (43%) of the same on health care.

Konstantin Vasiuk, Executive Director, IT Ukraine Association, noted:

“Every year IT export grows by 20-25 percent. To maintain the current growth rate against tough global competition for talents, the first thing we require is that the state adopts a balanced approach to existing tax models review and develops IT education.”

The foremost reason for the export of Ukrainian IT growth is the high demand for IT solutions on the global market along with keeping the contractual model in cooperation between companies and IT specialists.

Oleksandr Bornyakov, Deputy Minister of Digital Transformation, emphasized:

“All actions of the Ministry of Digital Transformation in IT sphere are aimed at market development and increase in its growth rate. Our objective is not to impose additional compound taxes on IT- companies, but, vise versa, to establish favourable conditions for their work. To fulfill this objective we are constantly engaged in dialogue with IT-market to develop best regulation model. Additionally, we work on a number of initiatives to facilitate operations of IT-companies.”

IT Ukraine Association is the largest pool of IT service and product companies in Ukraine, which collectively account for 50% of all export earnings of IT industry in Ukraine and unite 27% of Ukrainian IT professionals. The Association has been operating in the market for over 15 years. Our mission is to ensure favorable conditions for IT industry development in the country and abroad.