On 9 December 2022, the State Tax Service (STS) of Ukraine issues a press release providing details about industrial parks tax incentives. Industrial Park tax incentives is regulated by the Law of Ukraine № 5018-VI as of 21 June 2012.

Law stipulates that national incentives for arrangement and operation of industrial parks can be carried out at the expense of state and local budgets and from other sources not legislatively prohibited, including in the form of tax incentives for the initiators of creation – business entities, management companies and the industrial parks participants

The tax code of Ukraine defines general incentives for business entities, and additional opportunities for participants and other subjects of industrial parks.

Profit of industrial park participant from carrying out certain types of economic activities in the processing industry, in sphere of collection, processing and removal of waste, recovery of materials is exempted from taxation for ten years.

Code stipulates circle of industrial park participants – legal entities that do not have a right to apply such income taxation peculiarities.

Amount of funds exempted from taxation must be directed to development of activities of the industrial park participant within such industrial park, not later than December 31 of the year following the reporting year.

Procedure for the use of funds exempted from taxation by the industrial park participant for development of its activities within the industrial park was approved by Resolution of the Cabinet of Ministers of Ukraine № 1095 as of 30 September 2022.

STS also clarified the incentives with respect to value-added tax (VAT) and local taxes.