Parliament approves compensation for capital investments through taxes

The Verkhovna Rada approved two bills (Nos. 13414 and 13415, amendments to the Customs and Tax Codes, respectively) on compensation for capital investments through taxes in the first reading. This was announced by the co-author of the initiative, Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmytro Kysilevsky.

Investment projects that can be compensated through the company’s own taxes must be implemented in the processing industry.

In particular, the following expenses are subject to compensation:

• construction of engineering networks, engineering structures, and related infrastructure facilities;
• purchase of buildings and structures or their construction, modernization, technical and/or technological re-equipment;
• purchase of production equipment;
• purchase of land plots.

Partial compensation for the costs of implementing investment projects in the processing industry will be provided through the following taxes:

• income tax;
• import VAT on equipment;
• import duty on equipment;
• property tax;
• land tax.

As Dmytro Kysilevsky noted, Ukrainian industrialists are one step closer to an effective tool for stimulating investment, which their colleagues in the EU have been using for a long time.

«We are talking about the possibility of returning 30% to 70% of the funds invested in the construction of new or expansion of existing plants and the creation of industrial infrastructure through taxes. The Ukrainian economy, wounded by war, needs new impetus,» the MP explained.

The share of investments that can be compensated through taxes will depend on the volume of the investment project:

• from €100,000 to €1 million – 70%;
• from €1 to €20 million – 50%;
• from €20 to €50 million – 30%.

As GMK Center reported earlier, capital investments in Ukraine’s steel industry in the first half of this year, according to the State Statistics Service, increased by 57.9% compared to the same period in 2024 – to UAH 7.99 billion. Investments in the maintenance and modernization of production capacities in the mining sector amounted to UAH 28.94 billion during the period.