The President of Ukraine Volodymyr Zelenskyi has signed the Law “On amendments to the paragraph 4 of the section XXI “Final and transitional provisions” of the Customs Code of Ukraine on exemption from import duty of new equipment and components, which are imported for implementation of an investment project with significant investments to implement a special investment agreement” № 1294-IX, which was adopted by the Parliament on March 2 of this year.

According to this document, temporarily, to January 1, 2035, the equipment , which is imported into Ukraine for implementation of the investment projects, in accordance with the Law “On state support of the investment projects with the significant investment”, must be exempted from import duty.

The mentioned tax benefits are provided if the imported goods, are manufactured not earlier than three years before the date of their importation into Ukraine, have not beed used as well as do not originate from the occupier country, or the aggressor state, or the occupied territory of Ukraine.

At the same time it is provided that the list and volumes of goods imported in such a way must be approved by the Cabinet of Ministers of Ukraine. The special investment agreement must be signed together with it.

The Head of State has also signed the Law “On amendments to the Tax Code of Ukraine on peculiarities of taxation of the business entities implementing the investment projects with significant investments in Ukraine” № 1293-IX, initiated by him, which was also adopted by the Verkhovna Rada on March 2.

According to this law, temporarily, to January 1, 2035, the transactions on import of equipment, components to it, which is imported for the implementation of an investment project with significant investments are exempt from the value added tax (VAT).

Moreover, the investors, who are parties to a special investment agreement concluded in accordance with the Law of Ukraine “On state support of investment projects with significant investments” are also exempt from the corporate income tax, provided that this profit is received as a result of such an agreement.

Reference source: the President of Ukraine