Adopted the Law of Ukraine “On Amending Section XX ‘Transitional Provisions’ of the Tax Code of Ukraine Regarding the Specifics of Taxation of Economic Subjects Implementing Investment Projects with Significant Investments”

Information Department of the Verkhovna Rada of Ukraine Secretariat
02 March 2021, 12:56

The Law of Ukraine No. 3761 “On Amending Section XX ‘Transitional Provisions’ of the Tax Code of Ukraine Regarding the Specifics of Taxation of Economic Subjects Implementing Investment Projects with Significant Investments” provides for tax privileges until January 1, 2035, for “an investor with significant investments who is a party to a special investment agreement”: VAT will not apply to transactions of import of certain goods, there will be profit tax exemption for a period of 5 years (but not in excess of the size of the state support provided for by the respective special investment agreement), also, local self-government bodies will have the right to establish lower land tax rates and rates of rent or to exempt investors from the land tax.

The law editorially clarifies the norm regarding transfer pricing and the conditions for obtaining an exemption in the form of exemption from corporate income tax in respect of investment objects.