The relevant committee of the Verkhovna Rada has supported key changes to the draft laws that create the legal regime of Defence City - a new tool for the development of the Ukrainian defense industry. This was reported by the "Ukrainian Council of Arms Manufacturers".
These are two projects: No. 13420 "On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine Regarding Support for Enterprises of the Defense-Industrial Complex" and No. 13421 "On Amendments to Section XXI "Final and Transitional Provisions" of the Customs Code of Ukraine Regarding Support for Enterprises of the Defense-Industrial Complex."
"The text, which is being submitted for second reading, takes into account the industry's proposals and eliminates most of the risks that were in the previous version," the Ukrainian Council of Gunsmiths noted.
Here we describe the main changes between the first and second readings of draft law No. 13420. For example, in the first reading, the main norms were introduced into the Tax Code and other legislative acts. And in the final version, a separate section is provided for Defence City in the Law "On National Security of Ukraine".
The "Ukrainian Council of Gunsmiths" explained that this allows for a clear definition of key concepts, the procedure for acquiring and losing resident status, as well as mechanisms for implementing the regime. Responsibility for monitoring compliance with the requirements and maintaining the register lies with the Ministry of Defense.
Another change concerns income requirements. Qualified income has been established and its threshold has been reduced from 90% of net income to 75% of qualified income. A separate indicator of 50% is provided for aircraft manufacturing enterprises. The Ukrainian Council of Gunsmiths noted that this opens the Defence City regime to a larger number of companies.
In addition, a clear definition of qualified income has been introduced and the list of defense goods subject to the regime has been expanded. A full-fledged Resident Register has also been introduced.
"It will ensure reliable data protection, an orderly accounting system, and the ability to quickly obtain information. The Ministry of Defence has been designated as the holder of the register, and the procedure for maintaining it will be approved by the Cabinet of Ministers," the report says.
At the same time, the possibility of simultaneous residency in Diia City and Defence City is provided. However, in this case, the company will not be entitled to Defence City tax benefits.
Additional changes include the abolition of the rule on the mandatory payment of land and environmental taxes and real estate taxes after exiting the legal regime. Income tax is not paid if reinvested.
Among other things, the mandatory relocation requirement for obtaining resident status has been abolished - it has become voluntary. The final version also retains key provisions that provide additional protection for data about defense enterprises.
The "Ukrainian Council of Gunsmiths" stated that after reviewing the final version, they have no critical comments about the concept.
"Ukrainian Council of Gunsmiths"
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