The government allowed the import of industrial parks’ equipment without payment of duty

On September 7, 2022, the Cabinet of Ministers of Ukraine exempted equipment for industrial parks (IPs) from import duty and import VAT. Dmytro Kysylevskyi, the deputy chairman of the Verkhovna Rada committee on economic development, reports about it on his Facebook page.

“Today (September 7, 2022), the government adopted an important by-law regarding industrial parks. This is about the procedure for exempting industrial equipment from import duty and import VAT. This is one of the incentives provided to industrial park participants,” he wrote.

The adopted procedure establishes an algorithm of actions for participants of industrial parks and state authorities regarding the import and intended use of equipment, the list of which is determined by law.

“Actually, from today, participants of industrial parks can import such an equipment under a new procedure – without import VAT and customs duties,” the message says.

To take advantage of the incentives, the IPs must be entered in the Register of industrial parks. Imported equipment must be used only within the park without being rented, leased or transferred for use under other conditions within 5 years.

As GMK Center reported earlier, the president Volodymyr Zelensky signed laws No. 5688 and No. 5689 on tax and customs incentives for industrial parks, which were adopted by the Verkhovna Rada less than a month ago.

Bills No. 5688 “On Amendments to the Tax Code of Ukraine regarding the creation of favorable conditions for attracting large-scale investments in industrial production” and No. 5689 “On Amendments to the Customs Code of Ukraine regarding the creation of favorable conditions for attracting large-scale investments in industrial production” propose:

• exempt from VAT the import of new equipment for the industrial park’s own use for activities in the processing industry or research activities;
• exempt residents of the industrial park from income tax for ten years;
• to give the right to local authorities to establish preferential rates of real estate tax and land fees.