Law of Ukraine

“On State Support for the Development of the Software Industry”

Date of entry into force:
November 7, 2012

The Law aims to create favorable conditions for the development of the Ukrainian software industry, in order to create high-productivity workplaces, attract investments, increase the production of high-technology products, stimulate research-intensive exports and import substitution, and actualize the research and technical potential of Ukraine.

The scope of the Law applies to business entities in the software industry, determined according to the Tax Code of Ukraine, and social relations related to their activity (Article 1 of the Law).

According to Article 2 of the Law, the forms of state support for the development of the software industry are:
  • establishing the specifics of taxation for entities in the software industry, as provided for by the Tax Code of Ukraine;
  • other forms of state support developed by the central executive authority in the issues of science, innovation and informatization, with their subsequent approval by the Cabinet of Ministers of Ukraine.

Article 3 of the Law envisages that state support for the development of the software industry aims to:
  • improve the means of ensuring development of the Ukrainian software industry;
  • stimulate development of the management system in the software industry, including to improve the product quality management through standardization;
  • forming an effective mechanism for cooperation of legal entities and natural persons employed in the spheres of fundamental and applied sciences, industrial and other sectors of the economy, with members of the software industry;
  • stimulating transition of the software industry to the innovative development model;
  • improving the tax, customs, currency, labor, and pension legislation relevant to the software industry;
  • increasing the number of high-productivity workplaces in the software industry;
  • increasing the competitiveness of the software industry participants on foreign markets;
  • creating favorable conditions for involving domestic and foreign investments into development of the software industry;
  • facilitating fundamental and applied scientific research in the sphere of informational technology;
  • activating international cooperation and improving Ukraine’s image on the international market as a country with a developed and highly competitive software industry;
  • facilitating top-priority implementation of computer programs created by members of the Ukrainian software industry at state enterprises, research institutions, state authorities and bodies of local self-government, including with the aim of decreasing customer expenses;
  • facilitating implementation of computer programs created by members of the Ukrainian software industry, including with the aim of decreasing domestic manufacturer expenses.

The action plans of the state support for development of the Ukrainian software industry are provided for by Article 4 of the Law.

According to Article 5 of the Law, in order to stimulate development of the management system in the software industry, the central executive authority in the issues of research, innovation and informatization, other central executive authorities within the scope of their authority, and business entities in the software industry create a mechanism for cooperation in the following directions:
  • improving the forms of statistical reporting submitted by business entities in the software industry;
  • determining the criteria for evaluating the condition and development of the software industry;
  • determining the functions, tasks and methods of management in the software industry;
  • implementing a system for effective cooperation between business entities in the software industry, central executive authorities, and bodies of local self-government, for the purposes of developing the software industry;
  • implementing a system for continuous monitoring and discovery of issues in the software industry, to improve its regulation;
  • regular analysis and forecast of the software market trends, and determining the update requirements of the software used by the state authorities, bodies of local self-government, state enterprises, institutions and organizations;
  • evaluating the demand for qualified staff in the software industry and implementing effective mechanisms for solving staffing issues.
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