Incentives for Significant Investments: explanatory guide

Guide available here

On 13 February 2021 the Law of Ukraine No. 1116 “On State Support for Investment Projects with Significant Investments in Ukraine” (Law on Investment Nannies) entered into force introducing a comprehensive legislative framework aimed at attracting large investments to the economy of Ukraine. According to the Law and respective amendments to the Tax and Customs Codes of Ukraine (effective as of 28 March 2021), a package of special investment incentives will be available for investment projects meeting certain criteria.

On 17 February 2021 the Government of Ukraine designated UkraineInvest to support investment projects willing to receive state support. UkraineInvest as the primary point of contact will guide investors through state support application process, assist in setting communication with state and local authorities.

Explanatory Guide on the Law is prepared to familiarize the potential investors with the specifics of the Law. The Guide provides information on available forms of state support, requirements to applicants and investment project with significant investments, details of application process.

This Guide will be constantly updated in accordance with adoption of respective by-laws by the Cabinet of Ministers of Ukraine (approx. by August 2021) to let investors fully enjoy up-to-date, complete, and comprehensive information on state support of investment projects with significant investments.

State support for industrial parks: explanatory guide

Guide available here

On July 21, 2022, changes to the Tax Code (Law No. 2330-IX) and the Customs Code (Law No. 2331-IX) entered into force for the initiators of the creation of industrial parks, their management companies and participants. The adoption of these laws completes the reform of the system of state incentives for investment parks.

• exemption from income tax for 10 years, subject to reinvestment in the development of the investment project;
• exemption from VAT on the import of new equipment for own use;
• the possibility of granting benefits for real estate taxation on the territory of industrial parks by decision of the local self-government body;
• exemption from import duty taxation of new equipment imported by participants of industrial parks for their own use.

As of August 2022, the Ministry of Economy is developing subordinate legal acts for the full launch of the system of state incentives for industrial parks.
For those who already intend to take advantage of incentives for industrial parks, we suggest that you read the explanatory guide from the UkraineInvest team.
The guide contains all necessary information about available incentives, requirements for industrial parks, procedures for inclusion in the register of industrial parks, selection of a management company, etc. It  will be updated taking into account the relevant by-laws adopted by the Cabinet of Ministers.