Harmonization of the Customs Tariff, Imposition of Sanctions,..

Harmonization of the Customs Tariff

On 20.10.2022, the Verkhovna Rada adopted the Draft Law No. 7737 as a whole, according to which the Customs Tariff of Ukraine was harmonized with the global classification of goods, in particular, in the part of the product nomenclature; forms of foreign trade documentation.

Import duty rates shall remain unchanged.

Currently, the law is pending the President’s signature.

Imposition of Sanctions

Pursuant to The President’s Decrees No. 726/2022 and 727/2022 dated 19.10.2022, sanctions were imposed against a number of Russia-affiliated persons, both individuals and legal entities.

Discount Rate Unchanged

On 20.10.2022, the Board of the National Bank of Ukraine decided to keep the discount rate at 25%. As reported by the NBU, this value will not be revised until the II quarter of 2024.

The Areas of support for projects with significant investments have been expanded

The Cabinet of Ministers drafted amendments to the legislation regarding the extension of the regime of support for investment projects with significant investments to the following realms of activity:

  • activities in the realm of information and electronic communications,
  • real estate transactions,
  • operations in the field of production of energy-efficient building materials, climate equipment and equipment of heating, ventilation, air conditioning, and hot water supply systems.

Let us remind: an investment project with significant investments shall meet the following requirements:

  • the implementation period not exceeding five years,
  • the amount of investment exceeding € 20M,
  • over 80 new jobs with wages exceeding an average one in the respective region by more than 15% created,
  • the project is carried out in the realms of business activities defined by Laws of Ukraine No. 1293-IX and 1294-IX .

In particular, the following benefits shall apply to such projects:

  • exemption until 01.01.2035 from import duty and VAT taxation of import operations within the framework of an investment project with significant investments on the territory of Ukraine in the mode of importing equipment that was not in use and was manufactured no earlier than three years before import, according to the list and volumes, established by a special investment agreement with the relevant investor,
  • exemption until 01.01.2035 from corporate income tax during the first five consecutive years from the date of submission of the relevant application by the investor, but not before the commissioning of the facility built as part of the investment project.

Currently, the draft law is pending parliamentary consideration.

Registration of Lease Rights for Agricultural Plots Restored

On 19.10.2022, the Verkhovna Rada adopted as a whole the Draft Law No. 7636 imposing the restoration of land auctions for the right to lease agricultural plots of state and communal property as well as registration of lease rights for agricultural plots in the State Register of Real Property Rights.

Let us remind you that according to Law of Ukraine No. 2145-IX dated 24.03.2022, land auctions for property rights on agricultural land (in particular, lease rights) of state and communal property has not been held during martial law.

Currently, the draft law is pending the President’s signature.