Ukraine’s Cabinet of Ministers has approved the rules and volumes of imported spare parts enjoining tax advantages until 2025 by aircraft building enterprises of Ukraine.
The draft government resolution was approved at a Wednesday meeting.
First Deputy Prime Minister of Ukraine, Minister of Economic Development and Trade Stepan Kubiv said that the introduction of tax advantages for aviation industry by the government must help to replenish working capital of the sector companies, attract investment for upgrade and modernization of their fixed assets and increase their profits.
As reported, the Verkhovna Rada in December 2016 amended the Tax Code of Ukraine aiming to support aircraft building industry.
For the period from January 1, 2017 until January 1, 2025 aircraft builders are exempted from paying VAT for imports of goods (apart from excisable goods) used for the needs of aircraft building and transactions to supply the results of research and design works to the customs territory of Ukraine.
The aircraft builders are also exempted from paying profit tax. The saved funds will be considered the targeted financing for research and designs works, re-equipment of the technical base, increase of production and introduction of new technologies. The aircraft building companies are also exempted from paying land tax on parcels where industrial facilities are located.