Trade agreements taxes and preferences

Trade agreements taxes and preferences

Trade agreements

The Government of Ukraine is working to achieve economic stability and restore growth. The State and institutional reforms on the adaptation of legislation to EU standards, positively affect on the business environment: 

  •  in Doing Business ranking Ukraine rose to 61 place; 
  • in Paying taxes ranking Ukraine took 65 place.
EU (28 member states) CANADA CIS ISRAEL
Valid as of: January 1, 2016. Valid as of: August 1, 2017. Valid as of: September 20, 2012 Valid as of: January 21, 2018
Goal
Goal
Goal
Goal
EUROPEAN FREE TRADE ASSOCIATION (EFTA) MACEDONIA MONTENEGRO GEORGIA
Valid as of: June 1, 2012
(Iceland, Liechtenstein, Norway, Switzerland)
Valid as of: July 5, 2001. Valid as of: January 1, 2013 Valid as of: June 4, 1996
Goal
Goal
Goal
Goal
goods
services
state procurements
gradual legislative approximation and economic integration with the EU

The enterprises and companies located in the territory of Dnipropetrovsk region take all the benefits that provided:

  • harmonized legislation and an expanded field of cooperation with the EU thanks to the associated membership of Ukraine in the European Union;
  • investment protection in the framework of the Declaration on International Investment and transnational corporations and Ukraine’s membership in the OECD; 
  • world trade standards and dispute settlement mechanisms due to Ukraine’s membership in the World Trade Organization;
  • compliance with the same rules of goods origin and products exports on a preferential basis using a diagonal cumulation system thanks to Ukraine’s participation in the Pan-Euro-Mediterranean regional convention;
  • simplified information exchange on products and services within the framework of Ukraine’s participation in the EU program COSME; 
  • participation in the international events, thanks to the visa-free and simplified regime on the part of Ukraine for 64 leading world countries (EU, USA, Canada, Japan, Brazil, Turkey, Georgia, Kazakhstan, Korea, Switzerland, UAE, Qatar, Hong Kong, Great Britain, etc.);
  • access to resources for the energy saving projects implementation in the framework of Ukraine’s membership in the International Renewable Energy Agency (IRENA);
  • elimination of customs duties and taxes, as well as quantitative restrictions in the mutual trade within the framework of 17 agreements on the free trade zone of Ukraine with 46 world countries, including the EU, EFTA, GUAM, Canada, etc.

TAXES

  • Company income tax: 18%.
  • Value-added tax (VAT): 20%.
  • Unified social tax: 22% of the wage fund.
  • Personal income tax: 18% of the salary employed person.
  • Real estate tax: up to 1,5% of the minimum wage per .
  • Land tax: from 1 to 12% of the land normative monetary estimate

PREFERENCES

Exemption from VAT (20%) provided in case of:
  • IT products supply (operating system, entertainment or training programs (their components, copies), Internet sites of online services, access to them, as well as any updates, applications, add-ons, etc.;
  • Delivery of the results of research and development works wich are carried out for the needs of the aircraft industry;
  • The importation into the territory of Ukraine of the goods that used in the aircraft industry.
Exemption from income tax (18%):
  • The profit of aircraft manufacturing companies is exept from taxation.
  • Инвестиционные проекты со значительными инвестициями.
Exemption from import duties taxation of:
  • Investors, who operate within the framework of production sharing agreements.
  • Equipment for industrial, scientific, technical parks arrangement .*
  • Equipment operating on renewable energy sources and energy-saving equipment.*
  • Materials, units and aggregates for the agro-industrial complex.*

  • In the case when the similar equipment or materials are not produced in Ukraine.
State support for industrial parks:
  • compensation to management companies, initiators - business entities and participants in industrial parks - of 50% of the costs of connection to the electricity grid;
  • compensation of loan interest payments to participants of industrial parks depending on the share of exports of their own production in their total income from economic activity;
  • partial compensation for investments of participants of industrial parks in the creation of production, carried out during the first three years, depending on the share of exports of their own production in the total income from their economic activities.
Local benefits (by decision of local government):
  • Preferences regarding the real estate tax payment.
  • Preferences regarding the land tax payment.
  • Preferences regarding the leasehold ground rent.