News (#1-2 January-February 2022)


Verkhovna Rada adopted tax privileges for industrial parks in first reading

The Verkhovna Rada adopted the Draft Law On Customs and Tax Privileges for Industrial Parks in the first reading, which contains customs privileges.

Thus, it is proposed that the following be exempt from customs duties: new equipment imported for the processing industry or research activities that take place in industrial parks.

At the same time, if the owner decides to sell the equipment within 5 years from the moment of its “preferential” import, or loses the status of the industrial park member earlier, such owner will be obliged to pay both the duty and an additional penalty.

The duty and penalty will also be payable in the event of improper use of imported equipment. Tax privileges are set out in Draft Law No. 5688.

It established the exemption of industrial parks members from paying value added tax when importing new equipment to Ukraine. The designated purpose is the processing industry or research activities in industrial parks.

Moreover, it is proposed to exempt park members from income tax for 10 years subject to a certain set of conditions. These include, in particular, the conducting of operations only within the industrial park, prohibition to accrue and pay dividends in favor of the owner of corporate rights.

It is also planned to grant powers to local authorities to set preferential rates for real estate taxes and land use fees.


Parliament to consider draft law on economic passport

The Committee of the Verkhovna Rada of Ukraine on Finance, Tax, and Customs Policy has recommended to include the Draft Law On Economic Passport No. 6394 of 6 December 2021 on the agenda of the VI session of the Verkhovna Rada and to adopt it.

The Draft Law, which was submitted by Ukrainian President Volodymyr Zelensky, establishes the basis for the creation and launch of the “Economic Passport”, namely personal accounts for children born no earlier than 1 January 2019. To that end, the Future Generations Fund will be created, for which special accounts will be designed to accumulate part of the income received from rent payments for subsoil use.

Each child will be credited 2 minimum wages annually. These funds will be used within the economy and, at the same time, the funds will be protected from devaluation. Tо achieve this, it is planned to use the instrument of domestic government bonds whose yield is higher than the rate of inflation.

Once citizens with an Economic Passport reach 18 they will be able to spend their savings on education at Ukrainian universities, buy accommodation, or transfer funds to their pension account. These funds can, in the event of serious illness, be used prior to a person reaching that age.

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