The draft law for startups subject to preferential tax policies provides income tax rate to be levied at 30% of the applicable taxation rates during the first 2 years and a 50% cut from the income tax rate for the third year, according to the press service of the Ministry of Education and Science of Ukraine. At this, the fourth and fifth year of incomes will be levied at 60% and 70% of the corporate income tax of Ukraine. To note, the current corporate income tax stands at 18%.
At this, the social insurance contributions for employees will be at the fixed rates of the due minimum payments, and not according to paycheck volumes.
The document will clearly envisage criteria to be considered as a startup, its history, as well as innovation and social impact worth to be legible for preferential tax policies, told Viktor Shovkalyuk the head of the department of innovations and technology transfer of the Ministry of Education of Ukraine.
