KPMG Business Talks

• Business models used by Ukrainian IT companies. Pros and cons of each model.
• Overview of legislative initiatives for IT businesses.
• Trends in international tax structuring for IT businesses. Impact of the anti-offshore bill.
• Accounting and tax issues that IT companies might face (VAT credit allocation, procedures for recognition of revenue and cost of IT services, capitalisation of development costs, accounting for software purchases, and accounting for infrastructure leases and services).

The IT industry has long been an attractive target for foreign investment and is still one of the leading growth industries in Ukraine, driven both by the pool of high quality employees and the range of tax planning models available to the sector. However, some recent law-makers’ initiatives focused on the IT industry, as well initiatives aimed at curtailing offshore activities, may give rise to significant tax risks and could have a significant impact on the industry.