New incentives for industrial parks
On 15 July 2022, the President of Ukraine signed two laws (bills No. 5688 and No. 5689), which provide for a number of incentives for investments in the creation of industrial parks.
Draft law No. 5688 provides for the following changes to the Tax Code of Ukraine:
- exemption from income tax for residents of industrial parks for 10 years. At the same time, exemption from income tax is allowed on the condition that part of the profit is reinvested in the development of the investment project. It is forbidden to calculate and pay dividends.
- exemption of participants of industrial parks from import VAT and customs duties on equipment for own use according to the list of UKT ZED codes. Imported equipment must be used exclusively within the industrial park without the right to rent, lease or transfer for use under any other terms for a period of 5 years.
- establishment of tax benefits for non-residential real estate by decision of local self-government bodies.
- establishment the rate of land tax and rent for state and communal land in an amount lower than the land tax (by decision of local self-government bodies).
- exemption from payment of land tax (by decision of local self-government bodies).
Draft law No. 5689 amends the Customs Code of Ukraine and exempts from customs taxation new equipment and accessories for it, which are imported by participants of industrial parks included in the Register of Industrial Parks and meet the following requirements:
- are classified according to the specified list of UKT codes.
- are imported by participants of industrial parks exclusively for their own use within the industrial park without the right of alienation, transfer to rent, leasing or other right of use to third parties under any conditions earlier than 5 years from the date of their import to the territory of Ukraine.
- do not originate from and are not imported from the territory of a country recognized by the occupying state and/or the aggressor state.