Oleksii Chernyshov: The Verkhovna Rada provided fiscal incentives to investors of industrial parks

Today, the Verkhovna Rada adopted in the second reading and in general bills №5688 and №5689, which provide fiscal incentives to participants in industrial parks. These are a number of amendments to the Tax and Customs Codes, which stipulate, in particular, for the exemption from income tax for residents of industrial parks for 10 years on condition of its reinvestment in the development of an investment project. This was announced by Minister for Communities and Territories Development Oleksii Chernyshov.

"Industrial parks will become one of the key tools for post-war reconstruction and modernization of Ukraine. It is there that the new industrial capacity of our state will be born. Industrial parks will consolidate the manufacturing business in Ukraine. Therefore, the fiscal incentives approved today will help attract foreign investment and allow Ukrainian producers to relocate enterprises during the war, resume their work and create jobs for professionals," said Oleksii Chernyshov.

The Minister also noted that even amidst war, there is observed interest among businesses in creating new industrial parks in the regions of the country. Therefore, the provision of fiscal incentives will be a powerful signal to potential investors and local communities, as well as another important step in creating a platform for post-war economic recovery.

It should be noted that the bills provide:

· Exemption from income tax for 10 years provided that the part of the profit that is exempt from taxation is reinvested;

· Exemption from import VAT and duties on production equipment without the right to alienate this equipment for 5 years;

· The right of local governments to provide benefits for certain local taxes (real estate tax, land fees, land tax).

As a reminder in October 2021, President of Ukraine Volodymyr Zelenskyy signed the Law on Amendments to the Law of Ukraine "On Industrial Parks", which introduces financial, infrastructural and institutional incentives for investors in industrial parks.