Ukraine Ranks 5th Among Fastest Growing Freelance Markets
Ukraine ranks fifth amongst the fastest growing freelance markets in the world. Global Gig Economy Index, the most recent report by Payoneer, investigates Q2 2019 to provide a breakdown and dynamics of freelance earnings across the world. Ukraine owes its 5th place to a special tax regulation for freelancers and digital product companies that exempt them from the value-added tax, a recent Forbes article goes to explain.
According to Payoneer, the top 10 dynamic freelance markets in the world are:
- the US (78% growth compared to Q2 2018);
- the UK (up 59%);
- Brazil (up 48%);
- Pakistan (up 47%);
- Ukraine (up 36%);
- the Philippines (up 35%);
- India (up 29%);
- Bangladesh (up 27%);
- Russia (up 20%);
- Serbia (up 19%).
The survey’s findings rely on 300,000 Payoneer users.
The US and the UK, being more advanced economies, have reasons of their own to employ freelancers. A lot of companies seek to minimize risks, hence why they increasingly turn to freelancers, says Eyal Moldovan, general manager at Payoneer.
On top of that, a lot of professionals opt in for freelance work because it fits their lifestyle perfectly.
As for other markets, the driving force behind growing freelance earnings is the government-backed strategy to outsource the industry. In some cases, it goes hand in hand with tax breaks.
Forbes insights stress that Ukraine established a special tax regulation for IT outsourcing and digital product companies. This taxation regime releases professionals from the value-added tax. In addition, the government allows IT outsourcing companies to hire freelancers as subcontractors. The latter don’t have to pay the labor tax. Moreover, these companies also benefit from simplified foreign currency controls.
A lot of freelance professionals in developing countries are young people seeking to establish themselves in the industry and advance their careers. In particular, the 35-44 age cohort accounts for 32% of freelance earnings, although this cohort represents just 23% of freelancers.
The group of freelancers aged 18 to 34 represents 64% of them globally, while only making 53% of total freelance earning globally. Professionals aged 45 to 54 make 9% of freelancers and account for 9.4% of freelance earnings.
“Some of the markets – for example, India and Ukraine – some freelance workers explore business opportunities even further. For example, they hire subcontractors in countries with lower income to generate profits,” Moldovan adds.
Information exchange between countries will keep fostering global freelance markets in the future, experts believe.