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Ukraine to Roll Out EU-Style Tax Offsets for Industrial CAPEX

by Roman Cheplyk
Thursday, June 26, 2025
2 MIN
Ukraine to Roll Out EU-Style Tax Offsets for Industrial CAPEX

New draft laws promise to reimburse up to 70 % of plant, equipment and infrastructure spending via future tax credits

The Verkhovna Rada has registered draft laws № 13414 and № 13415 that replicate Europe’s most successful investment-compensation tools. If passed, companies that pour fresh capital into Ukrainian production lines—whether in agro-processing, engineering, or the defence sector—will recover part of their costs through the very taxes those projects generate.

Eligible CAPEX Buildings & engineering networks • Production equipment • Transport infrastructure • Land acquisition
Reimbursed via Corporate income tax • Import duty & VAT on equipment • Land & real-estate tax

Compensation scale

  • €100 k – 1 m: up to 70 % of qualifying spend

  • €1 m – 20 m: up to 50 %

  • €20 m – 50 m: up to 30 %

“These EU-tested incentives will stop Ukrainian factories from relocating abroad and attract green- and brown-field projects to our regions,”
– Yuliia Svyrydenko, Minister of Economy

Why it matters for investors

  1. Predictable payback: Tax offsets kick in as soon as the facility starts booking revenue—no separate grant negotiations.

  2. Sector-agnostic: Applies to everything from food-processing and renewables to high-tech machining and drone assembly.

  3. Geo-diversification: Aligns Ukraine’s incentive framework with those of Poland, Slovakia and Romania—keeping supply chains closer to EU markets while leveraging lower operating costs.

The bills will now pass through committee scrutiny; if approved in the autumn session, the incentives could become available as early as 1 January 2026.

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