New Mechanism For Supporting Processing Industry

On 25 June 2025, the Verkhovna Rada registered Draft Laws № 13414 and № 13415 on compensation for investments through taxes.

Investment projects, the expenses of which can be compensated through taxes, should be implemented in the processing industry. In particular, the following costs are subject to compensation:

• expenses for the construction of utility networks, engineering structures, and related infrastructure;
• expenses for the acquisition of buildings and structures or expenses for their construction, modernization, technical and/or technological re-equipment;
• expenses for the purchase of equipment – according to Ukrainian Classification of Goods for Foreign Economic Activity (UKT ZED);
• expenses for acquiring a land plot.

Such compensation will be made through income tax, import VAT and import duties on equipment, property tax, and land tax.

The amount of compensation will depend on the amount of investment:

• from 100 thousand to 1 million euros – 70% of expenses;
• From 1 to 20 million – 50%;
• from 20 to 50 million – 30%.

The key difference between this initiative and others will be that it will work for investments by existing businesses, not just new ones.

We will closely monitor further developments in the status of these Draft Laws and report on them in future Legal News.