The Government has established a procedure for monitoring the use of surplus funds belonging to enterprises engaged in aircraft engineering, that on temporary basis, until January 1, 2025, are exempted from taxation of their profits. The decision was adopted by the Cabinet of Ministers of Ukraine at its meeting on June 7 on the proposal of the Ministry of Economic Development and Trade of Ukraine.

The purpose of this decision is to introduce control procedures for the targeted use of the funds released from taxation and to determine a mechanism of separate accounting of the freed resources, as well as directions for their use.

The decision of the Government creates favorable conditions for topping up the working capital of enterprises in the aviation industry; leveraging investments to upgrade and modernize fixed assets of companies in the industry with the introduction of advanced technologies, and allows the use of the aforesaid funds for research-science and research-development activities in aircraft building.

"Due to the adopted decision Ukrainian aviation industry will have funds for the creation of innovative and high-tech products. This will improve the competitiveness of our national aircrafts in world markets, increase tax revenues of the state budget, preserve jobs for nearly 50,000 employees", commented on the decision of the Government First Deputy Prime Minister/ Minister of Economic Development and Trade of Ukraine Stepan Kubiv.

As was reported, this year the Law of Ukraine "On Amendments to Section XX "Transitional Provisions" of the Tax Code of Ukraine with regards to support the aircraft industry", according to which the Cabinet of Ministers of Ukraine approved the procedure for monitoring the use of surplus funds of enterprises engaged in aircraft engineering, subject to the provisions of Article 2 of the Law of Ukraine "On the Development of the Aircraft Industry" and dealing with the development and/or manufacture including the final assembly of aircraft and engines to them.