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Publication date: 18.05.2024
Lawyer
News from IT companies: booking - residents of Diia.City
Mykhailo Fedorov, Deputy Prime Minister and Minister of Digital Transformation, recently emphasized the critical importance of booking technology and innovation business specialists. These enterprises play a significant role in the Ukrainian economy, providing constant contributions to the state budget and supporting the general economic infrastructure. Take a closer look at the latest updates on the reservation of IT specialists and the impact of Diia.City residents on the Ukrainian economy.
Importance of caveats for the IT sector
Current statistics
There are about 700,000 booked persons in Ukraine, of which only 4,000 are IT companies. This is a small proportion given the significant economic impact of the sector. The IT industry accounts for almost 5% of the country's GDP and generated UAH 20.8 billion in taxes last year, which is UAH 3.1 billion more than in 2022. The work of each IT professional supports nearly three additional jobs in the economy, highlighting the multiplier effect of the sector.
Booking criteria
The Cabinet of Ministers established the criteria according to which enterprises are considered critical to the economy and are entitled to the reservation of workers. Companies must meet at least three of the following criteria:
- Average salary: Not less than the average salary in the region for the 4th quarter of 2021.
- No debts from the ESR: no debt in the EDR.
- Tax contribution: more than 1.5 million euros of taxes paid to state and local budgets during the year.
- Income: More than 32 million euros of income in the last year, excluding loans.
- Diia.City Resident : Diia.City resident status.
- National Economic Significance: for IT companies, this includes an average employee salary of at least 1,200 euros and at least nine employees in the last quarter.
Recent bookings
Recently, 54 senior IT professionals, including architects, developers, and DevOps engineers, have been booked. These specialists are necessary to support and develop the strategic capabilities of Diia.City residents. Some notable companies and their low-key employees include:
- TOV "SUD": 6 people
- Visa Ukraine LLC: 15 people
- Glovoap Ukraine LLC: 11 people
- SE "SSM": 6 people
- Agri Chain LLC: 1 person
- FAVBET TECH LIMITED LIABILITY COMPANY: 15 people
Only Visa Ukraine paid 146 million hryvnias in taxes last year, which indicates the significant fiscal contributions of these companies.
The role of Diia.City
Economic contributions
Diia.City is more than just a hub for IT companies; this includes defense technology developers and other innovative businesses. With around 150 residents, these companies play a key role in the development of defense technologies and innovations that are critical to national security. Tax contributions to the IT industry, which amounted to UAH 20.8 billion in 2023, play an important role in financing defense and other vital services of the country.
Challenges and needs
The stability and growth of the IT sector is crucial, especially during an ongoing war. The industry faces challenges such as staff attrition and a deteriorating investment climate. In order for a business to win new contracts, attract investment and create partnerships, it is necessary to reserve key employees. Failure to do so could result in reduced investment, job cuts, business relocations, reduced support for the Armed Forces and lower living standards.
State support and further steps
The government has adopted regulations to simplify the reservation process for critical companies, which allows for the reservation of up to 50% of non-deficit specialty workers. As of May 10, the Ministry of Digital Transformation reported that only 4,050 IT specialists were booked, which indicates the need for further action and improvement of the reservation process.
Position Diia.City
Diia.City emphasizes the need for a valid reservation order for the stability of the industry and advocates its improvement. Key recommendations include digitizing and speeding up document processing and maintaining sector-wide booking capability. Diia.City is open to dialogue with legislators and government officials to strengthen the existing order, ensure maximum economic well-being, tax collection and defense capability of the country.
Conclusion
The reserve of IT specialists is crucial for sustainable growth and stability of the Ukrainian economy, especially in these difficult times. Diia.City residents continue to play an important role in economic contribution, job creation and technological advancement. By continuously supporting and improving the provisioning process, the Ukrainian IT sector can maintain its important contribution to the national economy and defense, ensuring a sustainable and prosperous future for the country.
