Hetmantsev announced easing of requirements for weapons manufacturers for residency in Defence City

The head of the parliamentary Finance Committee, Danylo Hetmantsev, announced his intention to soften the criteria for companies to join the future special legal regime of Defence City. These are draft laws that provide for tax, customs and budget benefits for companies from the defense-industrial complex (DIC).

The central topic of the meeting of deputies, armed associations and representatives of the Ministry of Defense was the criteria for including enterprises in the list of residents. Hetmantsev emphasized that it is advisable to preserve the general concept, while at the same time they plan to weaken certain requirements - in particular, regarding the share of weapons production.

Recall that after the first reading, the bill stipulated a norm of at least 90% of defense revenues for obtaining residency, which arms companies consider unrealistic. The new rules are currently being finalized and prepared for the second reading, which, according to Oboronka, should take place in August.

It is also proposed to provide the opportunity to join Defence City to manufacturers of dual-use products if they are primarily focused on the military sector. This includes, in particular, companies that produce drones and electronic warfare equipment.

Defence City is a future special legal regime that is intended to stimulate the production of weapons and the development of defense technologies in Ukraine. It provides for the exemption of residents from income tax on the condition of reinvestment of funds, as well as from taxes on land, real estate and environmental fees. Residents will receive access to exports and a number of benefits to simplify doing business.

You can read about the discussion around the new legal regime for gunsmiths in the Defense's article: Second wind for gunsmiths or the "club of the chosen ones". How is the largest defense industry reform in recent years being forged?