The Rada approved as a basis the compensation of capital investments through taxes
4 November 2025 14:20
The Verkhovna Rada has approved as a basis draft laws No. 13414 and No. 13415 on compensation for capital investments through taxes. This was announced by the co-author of the initiative, Deputy Chairman of the Verkhovna Rada Committee on Economic Development Dmytro Kysylevsky.
“Ukrainian industrialists have become one step closer to a very effective investment incentive tool that has long been used by their colleagues in the European Union. This is the opportunity to recover 30% to 70% of the funds invested in the construction of new or expansion of existing plants and creation of industrial infrastructure. The Ukrainian economy, wounded by the war, needs new impulses,” said the MP.
Investment projects that can be compensated through the company’s own taxes should be implemented in the processing industry. In particular, the following are subject to compensation:
- Expenses for the construction of engineering 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 production equipment;
- Costs of land acquisition.
Partial compensation for the costs of 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;
The share of investment that can be compensated through taxes will depend on the size of the investment project:
- From 100 thousand euros to 1 million euros – 70%;
- From EUR 1 million to EUR 20 million – 50%;
- From EUR 20 million to EUR 50 million – 30% of investments.
The key difference between this initiative and the others is that it will work for investments by existing companies, not just new ones.
Compensation for capital investments through taxes is a new tool of the “Made in Ukraine” policy for the development of Ukrainian producers, which was announced by President Volodymyr Zelenskyy in February 2024. It includes producer development programs with a focus on the manufacturing industry. In particular, to help attract investment, the program includes affordable loans “5-7-9”, grants of UAH 8 million for equipment and UAH 16 million for rehabilitation, industrial parks, support for projects with significant investments (from EUR 12 million), simplification of land rezoning, and investment insurance against military and political risks.
