ІТ-business supports an Exit Capital Tax. But there is a nuance

However, it should be noted that the beneficial effect of initiatives can only be achieved by maintaining and adhering to two important conditions:

• Business operating in a legal field should not be a source of “compensators”. Adoption of the draft law in the short run may lead to a shortage of revenues to the state budget. The only acceptable compensator, in this case, can be only saving public spending. Creating an additional financial burden on legal business completely offset the positive effect of introducing the tax on withdrawn capital;
• Payments to specialists, who cooperate with the enterprise on a contractual basis and use a simplified model of taxation, should not be equal to capital withdrawal operations. The current version of the bill contains a fully acceptable definition of controlled operations for cooperation with specialists working on a simplified taxation system (changes in subparagraph “З” sub-p. 134.1.2, p. 134.1, Art. 134 of the Tax Code of Ukraine). Any changes to this provision may cause a very negative effect for both the IT-industry and all small and medium businesses in Ukraine.

We are convinced that the adoption of the draft law #8557, while preserving the conditions above, will contribute to the further development of the Ukrainian IT-industry, help to create additional high-paying jobs within the country and make Ukraine a more attractive place to work for domestic IT-professionals.