Ukraine’s parliament has registered a landmark bill that mirrors EU investment incentives: manufacturers could reclaim a large share of capital expenditure through future tax liabilities.
How the mechanism works
| CAPEX per project | Tax-back ceiling | Offset sources* |
|---|---|---|
| €100k – €1 m | 70 % | Profit tax, import VAT & duty on equipment, property/land tax |
| €1 m – €20 m | 50 % | Same as above |
| €20 m – €50 m | 30 % | Same as above |
*Applicable to construction, networks, buildings, machinery and land‐acquisition costs in the processing industry.
Key features
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Applies to expansions of existing plants as well as green-field builds.
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Complements Ukraine’s current toolbox: 5-7-9 soft-loan program, €12 m+ “significant investment” regime, industrial-park perks and war-risk insurance.
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Aligns Ukraine’s incentive stack with EU schemes that have already lured several relocated Ukrainian factories.
Co-author MP Dmytro Kysylevskyi urges industrialists to lobby for swift passage, calling the bill “a historic step to make producing, investing and exporting in Ukraine truly profitable.”
