A draft law on "Defense City" has been submitted to the Verkhovna Rada, which provides for the creation of preferential conditions for defense companies. The draft law was submitted by people's deputies together with the Ministry of Defense of Ukraine, reports People's Deputy Danylo Hetmantsev.
The proposed changes are designed to create a unique legal regime for state support for defense enterprises. They will allow the Ministry of Defense to create a list of Ukrainian defense industry enterprises, the reporting and activities of which will have limited access and will be protected in accordance with the established procedure.
More importantly, residents of "Defence City" will receive tax benefits until January 1, 2036. This includes exemption from VAT on the condition of reinvesting this money, from land tax, real estate tax and environmental tax. The law will allow to preserve all existing tax preferences for the defense industry.
In addition to tax benefits, enterprises participating in the "Defense City" legal regime will be able to import the necessary components for production under simplified customs procedures. Simplified export control for military technologies will also be introduced. The draft law provides for additional guarantees for the protection of companies within the framework of criminal proceedings, as well as the possibility of the NBU establishing the features of currency supervision and currency transactions.
Lawmakers also propose to support defense enterprises during relocation to safe regions of Ukraine.
As a reminder, on June 19, the Verkhovna Rada adopted bill No. 7508, which allows the creation of joint defense projects between the state and private business. This will allow state-owned companies to receive investments in their own developments and scale up the production of defense products.