The Verkhovna Rada adopted as a basis two draft laws from the package on attracting investments

The adopted bills make changes to the Tax and Customs Codes and will facilitate the inflow of new investments into the Ukrainian economy.

The Verkhovna Rada adopted in the first reading the bill No. 3761 “On Amendments to Section XX “Transitional Provisions” of the Tax Code of Ukraine regarding the peculiarities of taxation of business entities implementing investment projects with significant investments. 273 people’s deputies voted for the document.

“The bill was developed to stimulate the attraction of strategic investors to the Ukrainian economy, increase the investment attractiveness of Ukraine, as well as increase the competitiveness of the Ukrainian economy through the introduction of state support for large investment projects”, – the explanatory note says.

In particular, the bill proposes from January 1, 2021 to January 1, 2035, to exempt from VAT equipment that an investor brings into the customs territory of Ukraine for the implementation of a project with significant investments. In addition, the draft law proposes to introduce income tax benefits.

The parliament also supported in the first reading the bill No. 3762 “On Amendments to Section XXI “Final and Transitional Provisions of the “Customs Code of Ukraine”. 262 voted for the document.

Thus, the bill proposes from January 1, 2021 to January 1, 2035 to exempt from taxation the import duty of equipment that is imported into the customs territory of Ukraine by an investor for the implementation of a project with significant investments within the framework of a special investment agreement concluded in accordance with the Law of Ukraine “On State Support of Investment projects with significant investments”. However, the exemption from the import duty may last no more than the period and volume of state support specified in a special investment agreement.

At the same time, such equipment must be new and manufactured no earlier than three years before the date of registration of an investment project with significant investments. The list and volumes of such equipment will be determined by the government of Ukraine together with the conclusion of a corresponding special investment agreement.

Recall that in July, the Verkhovna Rada supported another document from this package, namely, draft law No. 3760 “On state support for investment projects with significant investments”, also known as the initiative to create an “institution of investment nannies” in Ukraine.

The document defines the organizational, legal and financial foundations of state support for investment projects with significant investments. And, accordingly, it identifies new types of investor and investment project “investor with significant investment” and “investment project with significant investment”.

This bill became the embodiment of the idea of ​​”investment nannies”, voiced by President Volodymyr Zelenskyy at the forum in Davos six months ago.

However, Ukraine has already created a very good legal framework for the implementation of public-private partnership (PPP) projects, including concessions. Moreover, our legal regulation in this area is one of the best in the world.