Rada supports draft laws on investment compensation through taxes: first reading
Photo: Press service of the Verkhovna Rada

On Tuesday, November 4, the Verkhovna Rada adopted in the first reading draft laws on compensation for capital investments through taxes. About this said the press service of the parliamentary apparatus.

These are amendments to the Customs and Tax Codes of Ukraine (draft laws 13414 and 13415). Both draft laws were supported by 245 MPs.

These documents launch a model of compensation for investments through taxes, which will encourage businesses to move away from the raw materials model and invest in the development of the processing industry, explained chairman of the relevant committee of the Board Danylo Hetmantsev.

It provides for preferential taxation conditions for 10 years (2026-2035) for investors implementing projects for the construction, modernization or technical re-equipment of enterprises, the purchase of equipment or land for production.

"Ukrainian industrialists have become one step closer to a very effective investment incentive tool that has long been used by their counterparts in the European Union," he said said dmytro Kysylevskyi, Deputy Chairman of the Economic Committee of the Rada, co-authored the draft laws.

The key difference between this initiative and others will be that it will work for investments by existing companies, not just new ones, the MP added.

The amount of tax and customs benefits will depend on the amount of investment:

→ 100,000 – 1 million euros – up to 70% of investment;
→ eUR 1 million – EUR 20 million – up to 50%;
→ 20 million euros – 50 million euros – up to 30%.

Benefits include:

→ exemption from income tax (provided that 90% of income comes from the sale of its own processed products);
→ exemption from VAT and customs duties on new equipment;
→ the possibility of land benefits from local authorities.

  • on August 21, 2025, the Verkhovna Rada adopted draft laws No. 13420 and No. 13421, which provide for the creation of special legal regime of Defense City for the defense industry. In September, they were signed president Zelensky.
  • Now Defence City residents have significant tax preferences until 2036 (or until Ukraine joins the European Union).