What Supports Business in Ukraine During the War

by Olha Povaliaieva
Tuesday, June 22, 2022
What Supports Business in Ukraine During the War

Industrial parks — a platform with a special tax status for business development in Ukraine

Today, industrial parks are one of the most reliable institutions for business development, production, and innovation in Ukraine. To protect and strengthen industrial parks, bills 5688 and 5689 were passed, which provide these sites with economic incentives in the form of tax cuts.

"Finally, the state began not to spend money but to invest them. Because for 1 UAH of state incentives given by the state, there are 5-6 UAH of investments. This money goes into production, job creation, and the development of the economy, which are so necessary after the victory. In the end, this money is returned to the budget in the form of paid taxes in a much larger volume. Now our economy will have adequate, effective tools to compete for investors worldwide. We will be able to restore our industry and country," Dmytro Natalukha, co-author of the bills.

What will the bills bring to the participants of industrial parks?

  • Cancellation of VAT on equipment imports;
  • Cancellation of income tax for 10 years;
  • Special preferential real estate tax rates.

"We expanded the types of activities for participants in industrial parks who are entitled to enjoy income tax benefits. Now it is also an activity for the production of cars, motorcycles, vehicles designed to carry 10 or more, vehicles for the transport of goods. Excluded from activities the production of coke and refined products, iron, steel, and ferroalloys. The obligation for ten years to direct the received profit to the development of the activities of the industrial park participant within the industrial park was excluded," Dmytro Natalukha.

Thus, the government is investing in a scheme that stimulates Ukraine's economy during wartime and will bear fruit in the postwar period.

You will be interested