The Verkhovna Rada has adopted in the first reading bills No. 13414 and No. 13415, which provide for the introduction of compensation for capital investments in the processing industry through tax benefits.
This is reported by Business • Media
Conditions for Compensation and List of Expenses
According to the new legislative initiatives, enterprises in the processing industry will have the opportunity to compensate certain expenses through the taxes they pay. The list of expenses eligible for compensation includes:
- construction of engineering networks and facilities, as well as related infrastructure objects;
- acquisition or construction, modernization, and re-equipping of buildings and structures;
- purchase of production equipment;
- acquisition of land plots.
Compensation will be provided through the following taxes: profit tax, import VAT on equipment, import duties on equipment, property tax, and land tax.
Compensation Amounts and Financial Indicators
The amount of investments that can be compensated depends on the sum of invested funds:
- From €100,000 to €1 million – 70% of expenses will be compensated.
- From €1 million to €20 million – 50% of expenses will be compensated.
- From €20 million to €50 million – 30% of expenses will be compensated.
The program applies to both new investment projects and investments of existing enterprises. According to Yaroslav Zheleznyak, Deputy Chairman of the Financial Committee, the expected cost of tax benefits ranges from 20 to 40 billion hryvnias.
“The introduction of tax and customs benefits for investors is focused on stimulating future investments in the processing industry and does not create direct losses for the budget,” noted Danilo Hetmantsev, Chairman of the Financial Committee.