Ukraine has issued Draft Law 5688 on 22 June 2021, and Draft Law 5688-1 on 7 July 2021 ‘on Amendments to the Tax Code of Ukraine to create favorable conditions for attracting large-scale investment in the industrial park’. The Draft Law introduces the following incentives for industrial production:
Profit of a participant of an industrial park included in the Register of industrial parks from economic activity in the spheres of processing industry, or research activities exclusively on the territory (within) industrial parks, is exempt from corporate income tax for 10 consecutive years starting from the first day of the first month of the calendar quarter, which is determined by the taxpayer – a participant of the industrial park in the submitted by the supervisory authority tax in any form of an application for the exercise of the right to apply the exemption provided for in this paragraph, but not earlier than the date of submission of such application.
The application of the tax rules of the paragraph is allowed provided that the participant of the industrial park will have the status of such a participant for at least 10 years and during these 10 years:
- carries out economic activity exclusively on the territory and within the industrial park. Data from the Register of Industrial Parks are used to confirm the status of a participant in an industrial park; and
- does not accrue or pay dividends (equivalent payments) in favor of the owner of corporate rights.
Exempt from value-added tax (VAT) transactions for the importation into the customs territory of Ukraine in the customs regime of import of new equipment (equipment), imported by participants of industrial parks included in the Register of Industrial Parks, exclusively for their own use for their activities in the fields of processing industry, or research activities on the territory (within) the industrial park (without the right to lease, lease or transfer for use to third parties on any other terms), provided that the relevant goods are manufactured not earlier than three years before the date of their importation into the customs territory of Ukraine, were not in use.
