THE EVOLUTION OF TAX POLICY IN THE FIELD OF INFORMATION TECHNOLOGY: FROM GLOBAL PRACTICES TO NATIONAL DECISIONS

Abstract

The article examines the peculiarities of international approaches to the taxation of IT enterprises and the prospects for their implementation in Ukraine. In the context of globalization, IT companies actively choose jurisdictions with favorable tax systems in order to minimize costs and maximize profitability. The study analyzes the experience of 32 countries representing different economic models, including European states, offshore zones, planned economies, countries affected by military conflicts, as well as global leaders in IT services. The main incentives identified include low corporate tax rates, research and development tax deductions and credits, preferential regimes for intellectual property income such as the “Patent box,” and specific benefits for start-ups. Special attention is devoted to Estonia’s unique model of taxing distributed rather than reinvested profits, which has proven to be an effective mechanism for stimulating reinvestment and innovation. The article highlights the growing importance of the Ukrainian IT sector for the national economy, demonstrating its increasing share in Gross Domestic Products and exports even during the challenges of the COVID-19 pandemic and the full-scale war. A detailed assessment is provided of the special tax and legal regime “Diia City,” introduced to enhance the competitiveness of Ukraine’s IT industry. This regime offers flexible taxation models, reduced personal income tax, and favorable social security contributions, which resemble elements of the Estonian system. It is argued that while such measures may result in temporary fiscal risks for the state budget, they create long-term opportunities for sustainable development of the IT industry, encourage innovation, and strengthen Ukraine’s position in the global digital economy. The implementation of selected international practices, especially in the field of research and development incentives and intellectual property taxation, is proposed as a strategic tool for attracting investment, retaining IT companies within the national jurisdiction, and accelerating the digital transformation of the state.