Introduction of a mechanism for compensating capital investments through taxes

On 4 November 2025, the Verkhovna Rada of Ukraine adopted draft laws No. 13415 and No. 13414, which introduce amendments to the Tax and Customs Codes of Ukraine.

The initiatives are aimed at attracting large-scale investments in high value-added production and creating tax incentives for the development of the processing industry.

Draft Law No. 13415 provides for the introduction of a system of tax preferences for entities included in the Register of Investors implementing investment projects in the manufacturing industry:

  • VAT exemption on imports of new equipment and components to be used exclusively for investment projects in the processing industry. The list of such goods will be specified in the Customs Code;
  • the exemption from corporate income tax for up to ten years from the start of the investment project;
  • the possibility of exemption from local taxes, namely land tax and rent for state-owned or municipally-owned land, by decision of the local government.

Draft Law No. 13414 proposes exemption from import duties on new equipment necessary for the implementation of investment projects. The list and volumes of such equipment imports will be determined in a business plan submitted together with an application for inclusion in the Register of Investors.

Tax and customs incentives will apply exclusively to legal entities that are residents of Ukraine and operate in the manufacturing industry or in the field of industrial and household waste processing (except for waste disposal). At the same time, the legislation provides for exceptions for areas with increased social risks, in particular the production of alcohol and tobacco products.

The key administrative tool will be the Register of Investors Implementing Investment Projects in the Processing Industry. The Cabinet of Ministers of Ukraine will determine the procedure for maintaining the register, the conditions for inclusion and exclusion of entities, as well as the requirements for reporting on the implementation of investment projects.

We will closely monitor further developments in this area and will report on them in future Legal News.