On June 21, the Verkhovna Rada approved tax and customs incentives for industrial parks in Ukraine. In particular, the approved laws №5688 and №5689 provide for exemption of future residents of industrial parks from import VAT and duties on equipment, as well as exemption from income tax for 10 years. In addition, local governments have the right to provide benefits for local taxes, writes “Telegraph”.
The initiator of the bill Dmitry Kisilevsky said that the requirement to use imported equipment only within the industrial park without the right alienation for 5 years.
Exemption from income tax is allowed subject to reinvestment of part of the income equivalent to the amount of income tax. Also, residents of industrial parks can not accrue and pay dividends. And it must be a separate legal entity, which is physically and legally located inside the park.
“Ukraine is implementing an industrial development tool that has long been used successfully around the world,” said Dmytro Kysylevsky. “For example, in Hungary, 210 industrial parks generate about 30% of GDP. In Turkey, in 400 very successful industrial parks, virtually all Turkish industry is grown. Every dollar of state investment in the infrastructure of industrial parks will attract 5-6 dollars of investment. “
Dmytro Kysylevsky also noted the importance of accepting incentives for industrial parks under the current martial law.
“Why should industrial parks be launched right now without waiting for victory in the war? First, industrial parks create favorable conditions for the relocation of industrial enterprises. Secondly, in contrast to the initiatives to open imports, the new tax incentives are aimed at domestic production and jobs, which Ukrainians really need right now. Thirdly, for the occupied and affected areas, industrial parks will become a convenient tool for organizing industrial development and resumption of enterprises. Thus, industrial parks will simplify the relocation of industrial enterprises during the war and accelerate economic recovery after the victory, “the People's Deputy summed up.
In September 2021, the Verkhovna Rada passed the first of three bills for the development of industrial parks in Ukraine. It provided for the possibility of financing from the budget the supply of infrastructure and networks to industrial parks, the possibility of compensation for connection to networks within the park, as well as the possibility of compensation for interest rates on loans. The Government was also instructed to provide at least UAH 2 billion annually for the implementation of programs to support industrial parks.
