To give you some perspective on my point of view, I'm from Ukraine, I'm a developer but not a freelancer yet (and chances I become one a significantly lowered by this new law).
There are several aspects of this thing.
It is not that there is a crisis everywhere, but everything is perfect in Ukraine. Obviously Ukraine has big problems, may be not as big as Greece for instance, but nobody really knows.
After this year's election old government was changed by their rivals. Obviously previous government was not able to take any serious unpopular measures having election in the nearest future. On the other hand, current government seems to be able to afford this in terms of politics. And it seems that government has to do something unpopular like in many other countries. Despite all the talks, neither of major political parties actually represents middle class as there is almost no middle class in Ukraine (i.e. not enough voting power to be the main audience). Most powerful parties represent interests of big business (or so called "oligarchs") and are supported by votes of low class people (that is majority of population). The differences between parties are different supporter oligarchs and different regions of Ukraine where parties are popular. That said it is obvious that main target of unpopular changes of current government might be:
Business of rival oligarchs, but only if it does no severe damage to your own business
Small and middle business
Usual people, but you can't do much as they are your voters. However retirement age probably will be increased.
Taking into account this and very high level of corruption, it is obvious that middle class (including software developers) has no belief in government and that taxes will be used in a good for them way.
We have relatively high tax level (but AFAIK not really higher than in Western Europe). Taxation system is also very cumbersome and contradictory. Just to make an example: our fiscal police has actual plans for fines and literally any firm might be fined during regular checks. It means that bookkeeper is not mandatory but corresponding stuff actually can not be properly done by a person without corresponding education and who tries to run business at the same time.
For a long time there also has been a "simplified taxation scheme" that was originally intended for different kinds of entrepreneurs and small business. There were two major simplifications:
Very few taxes and simplified reports
Much lower taxes rates
There are some limits on total income and business areas to be eligible for such scheme.
However this legal scheme is also used in different kinds of "tax optimizations" and money laundering schemes. That's why it is an obvious target for government who wants to get more money.
For software outsourcing companies salary is major part of expenses (more than 1/2 according to their claims) and thus optimization of salary taxes is important goal. The biggest salary tax is pension tax and is about 1/3. Entrepreneurs with simplified taxation doesn't pay it. Taking into account fact that usually developers in Ukraine are relatively young (mostly under 30-35) and have no belief in government and in state pension system, it makes sense to not pay this tax and either pay higher salaries or reduce rates for customers. That's why most of big software firms, that have to run their business in a reasonably legal way, nominally have almost no employees. All of the employees are nominally contractors and entrepreneurs eligible for simplified taxation. In most of cases, software firms employ (or rather contract) special bookkeepers to fill reports for their "contractors".
There are also "real" software developers entrepreneurs who work directly with western customers. And of course many of them also use simplified taxation (other just don't pay taxes at all).
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To give you some perspective on my point of view, I'm from Ukraine, I'm a developer but not a freelancer yet (and chances I become one a significantly lowered by this new law).
There are several aspects of this thing.
Taking into account this and very high level of corruption, it is obvious that middle class (including software developers) has no belief in government and that taxes will be used in a good for them way.
For a long time there also has been a "simplified taxation scheme" that was originally intended for different kinds of entrepreneurs and small business. There were two major simplifications:
There are some limits on total income and business areas to be eligible for such scheme.
However this legal scheme is also used in different kinds of "tax optimizations" and money laundering schemes. That's why it is an obvious target for government who wants to get more money.
For software outsourcing companies salary is major part of expenses (more than 1/2 according to their claims) and thus optimization of salary taxes is important goal. The biggest salary tax is pension tax and is about 1/3. Entrepreneurs with simplified taxation doesn't pay it. Taking into account fact that usually developers in Ukraine are relatively young (mostly under 30-35) and have no belief in government and in state pension system, it makes sense to not pay this tax and either pay higher salaries or reduce rates for customers. That's why most of big software firms, that have to run their business in a reasonably legal way, nominally have almost no employees. All of the employees are nominally contractors and entrepreneurs eligible for simplified taxation. In most of cases, software firms employ (or rather contract) special bookkeepers to fill reports for their "contractors".
There are also "real" software developers entrepreneurs who work directly with western customers. And of course many of them also use simplified taxation (other just don't pay taxes at all).
Also there is whole range in between entr