The Verkhovna Rada is preparing tax breaks in exchange for investments for the development of the processing industry
The Verkhovna Rada Committee on Finance, Tax and Customs Policy is preparing amendments to the Tax and Customs Codes, which should stimulate the development of the processing industry by providing tax benefits that will compensate up to 70% of investments. About this reported the chairman of the committee, Danylo Hetmantsev, based on the results of the discussion of draft laws No. 13414 and No. 13415 at the meeting of the working group.
The initiative is aimed at making the business move more actively from the export of raw materials to its processing. It is envisaged that preferential tax conditions will be in effect during the years 2026-2035 for investors who will invest in the field of processing. To take advantage of the benefits, the investor needs to implement an investment project in the processing industry worth from 100,000 to 50 million euros within three years. This may include construction of new facilities, modernization or technical re-equipment of enterprises, purchase of equipment or land plots.
The amount of tax and customs benefits will be determined depending on the size of the actual investment: 70% — for investments from 100,000 to 1 million euros, 50% — from 1 to 20 million euros, 30% — from 20 to 50 million euros.
Within these limits, investors will be able to be exempt from income tax (provided that at least 90% of income is derived from the sale of products of their own production), import equipment without paying VAT and import duty, and also receive tax benefits for land and rent. According to Hetmantsev, the initiative was supported by business associations, and in the near future the proposals will be submitted for consideration by the specialized parliamentary committee.
