Last Thursday, September 13th, Lviv IT Cluster and Deloitte Ukraine co-organized a master class titled “Creating and Managing the International Organizational Structure – Best Practices.” Deloitte Ukraine is a part of the international company Deloitte – one of the “Big Four” accounting organizations and the largest professional services network in the world, which sets high world standards.
The event was attended by IT executives, financial directors, accountants, lawyers and – the stakeholders involved in IT companies management. They had a chance to learn about an international company structure setup, cooperation with foreign investors specifics, the formation of pricing for exported Ukrainian IT services and other aspects of operational and strategic decisions for the global market players. The event agenda was divided into three blocks, each covered one of the most relevant topics for IT companies.
At the first part of the event, Volodymyr Yumashev, partner of the Tax and Legal Department, leader of the Deloitte Ukraine and Telecommunications Group and Andrew Servetnyk, a partner at the Tax and Legal Department of Deloitte Ukraine, revealed the details of creating an international structure for the company, told about the legal relationship between owners and investors in the international structure and the popular jurisdictions based on Deloitte clients success cases.
The second part of the event was devoted to the challenges of working with foreign banks. The speaker, Vera Savva, Tax and Legal Department Manager, Deloitte Ukraine’s Integrated Business Transformation Group, discussed with the audience the options of accounts in foreign banks, the peculiarities of IT companies’ activity, which the bank is accessing when opening an account and verified international banks, which Deloitte Ukraine has experience with. The expert also talked about the compliance procedure.
The final part of the master class covered the transfer pricing rules for Ukrainian IT companies. Igor Lyuty, Senior Consultant, Tax and Legal Department in Deloitte Ukraine, and Andriy Polishchuk, Senior Tax and Legal Department Manager, Deloitte Ukraine Corporate Tax Group, shared their experience.
According to Volodymyr Yumashev, “Lviv is a city with an impressive number of IT companies working with foreign clients and investors, that’s why the workshop is relevant for the local audience. Analysing the experience of working with international clients, it is obvious that Ukrainian IT companies deal with misunderstandings when facing investors who happen to be unfamiliar with the Ukrainian market specifics. Hereby Deloitte Ukraine mission is to make Ukrainian business more transparent and opened for the international community“.
The master class had an interactive format: the participants enjoyed the convenience of asking their questions using the event app and get answers to the most interesting ones. Attendees appreciated the content and found it useful: “The central issue that troubles Ukrainian business is working with international banks and opening bank accounts. Dealing with banks is often complicated with many nuances that can affect the approval of the new account application. It was undoubtedly useful to know all the details. In addition, it was interesting to hear the latest updates regarding de-offshorization. Despite the fact that this trend has been known for sometime before, in reality, Ukrainian business was unprepared for a quick effect of the struggle against “low-tax” countries, ” commented the event participant Dmytro Hural, Legal Council at Intellias.
In general, Lviv, as a city with a huge number of IT companies and clients of Deloitte Ukraine, proved to be a good platform for the event, as the topic raised huge interest among the local audience. International structuring is relevant to the IT industry, as most IT companies work with non-resident companies in Ukraine. The organizers’ expectations were justified: more than 200 people registered for the event, the master-class was limited to host 70 persons. This is a good indicator that proves that international company structuring remains an issue for Ukrainian business.