Industrial parks will simplify the relocation of industrial enterprises during the war, – Kisilevsky
June 21, the Verkhovna Rada adopted tax and customs incentives for industrial parks in Ukraine.
The adopted laws No. 5688 and No. 5689 provide for the exemption of future residents of industrial parks from import VAT and equipment duties, as well as exemption from income tax for 10 years. In addition, local governments get the right to provide incentives for local taxes.
The initiator of the bills, Dmitry Kisilevsky, said that the requirement to use imported equipment exclusively within the industrial park without the right to alienate it for 5 years will be a safeguard against abuse of tax benefits. Exemption from income tax is allowed subject to the reinvestment of a part of profits equivalent to the amount of income tax. Also, residents of industrial parks cannot accrue and pay dividends. And it must be a separate legal entity physically and legally located inside the park.
In Ukraine, an industrial development tool is being introduced, which has long been successfully used all over the world, – Dmitry Kisilevsky noted, – For example, in Hungary, about 30% of GDP is generated in 210 industrial parks. In Turkey, almost the entire Turkish industry is grown in 400 very successful industrial parks. Each dollar of state investments in the infrastructure of industrial parks will attract 5-6 dollars of investment.
Dmitry Kisilevsky also noted the importance of adopting incentives for industrial parks under the current martial law.
Simplifying the relocation of enterprises and economic recovery
“Why should industrial parks be launched right now, without waiting for the war to be won? Firstly, industrial parks create favorable conditions for the relocation of industrial enterprises. Secondly, unlike initiatives to open imports, new tax incentives are aimed at domestic production and workers places that Ukrainians really need right now. Thirdly, for the de-occupied and affected territories, industrial parks will become a convenient tool for organizing industrial development and resuming the work of enterprises. Thus, industrial parks will simplify the relocation of industrial enterprises during the war and accelerate economic recovery after the victory,” – the people's deputy summed up.
In September 2021, the Verkhovna Rada adopted the first of three bills for the development of industrial parks in Ukraine. It provided for the possibility of financing from the budget the supply of infrastructure and networks to industrial parks, the possibility of compensating connection to networks within the park, as well as the possibility of compensating interest rates on loans. The Uyad was also instructed to provide annually at least 2 billion hryvnias. for the implementation of programs to support industrial parks.