10:15 22.12.2016

Verkhovna Rada grants tax benefits to aviation industry until 2025

Verkhovna Rada grants tax benefits to aviation industry until 2025

Ukraine's Verkhovna Rada has approved granting preferences to Ukrainian aircraft building industry for the period from January 1, 2017 until January 1, 2025.

Bill No. 3457 amending Section XX Transitive Provisions of the Tax Code of Ukraine regarding support of the aircraft building industry was approved by 253 parliamentarians late on Tuesday.

According to the document, 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.

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