Defence City is already at the start: draft laws may be considered as early as July 15
2 July 2025 13:23
The package of bills on the creation of a special legal regime for Defense City has already collected 130 signatures of MPs and has been officially registered in the Verkhovna Rada. This was announced by the chairman of the Verkhovna Rada’s Finance Committee, Danylo Hetmantsev, "Komersant Ukrainian" reports
“Together with David Arakhamia, we have submitted for registration a package of bills on Defence City developed jointly with the Ministry of Defense of Ukraine – so that our defense does not survive, but grows,” Hetmantsev wrote.
The first reading is expected to take place on July 15.
“The draft laws on Defense City have been registered! 130 signatures of MPs. I thank my colleagues for their support! We will try to bring it to the parliament for the first reading on July 15,” Hetmantsev added.
What does Defence City envisage?
Defence City is a comprehensive legal regime within whichdefense companies will be able to operate under simplified rules, enjoying tax benefits, customs privileges, simplified export controls and enhanced legal protection.
Key changes:
Creation of a special register of Defence City residents – it will be maintained by the Ministry of Defense. All reporting and information about companies will have limited access.
Tax benefits until January 1, 2036:
- exemption from income tax (subject to reinvestment);
- abolition of land tax;
- exemption from real estate tax;
- abolition of the environmental tax.
Improved customs procedures and currency control:
- simplified export controls (for military and dual-use technologies);
- simplified customs regulations;
- currency supervision under special conditions from the NBU.
Legal protection:
- special guarantees in criminal proceedings;
- facilitating the process of relocation of enterprises to safe regions.
Legislative changes
The package includes amendments to key codes and laws:
- Tax Code;
- Customs Code;
- Budget Code;
- Criminal and Criminal Procedure Codes;
- other legal acts.
Existing privileges, such as VAT exemption, accelerated depreciation, and benefits for employees of relocated companies, were also preserved.
