IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2011 | Removal date: 29 Dec 2020
Still in force

Tax or social insurance relief

Effective 1 January 2011 and in accordance with paragraph 17 () of subsection 4 of the Tax Code of Ukraine, aircraft enterprises shall be exempt from corporate income tax, related to their operations, and research and development work.
The beneficiaries are legal entities--residents of Ukraine--that operate in the aircraft sector and at least perform one of these three activities:

  • aircraft and aircraft engines manufacturing and repair works;
  • performing of military orders in connection to aircraft and aircraft engines manufacturing and repair works;
  • ensuring of the implementation of the international obligations of the country in international contracts that involve aircraft and aircraft engines manufacturing and repair works.

According to WTO documents G/SCM/N/253/UKR of 11 July 2013 and G/SCM/N/284/UKR of 20 July 2015, the state subsidies were at the amount of 806.72 million UAH in 2011 (approximately 101 million USD according to the USD/UAH exchange rate for 31.12.2011), 854.55 million UAH in 2012 (approximately 107 million USD according to the USD/UAH exchange rate for 31.12.2012), 387.10 million UAH in 2013 (approximately 48.43 million USD according to the USD/UAH exchange rate for 31.12.2013) and 642.72 million UAH in 2014 (approximately 40.75 million USD according to the USD/UAH exchange rate for 31.12.2014), respectively.
This state measure is to remain in force for 10 years.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

431 Engines & turbines & parts
8407 Sparkignition reciprocating or rotary internal combustion piston engines.
840710 Aircraft engines
840721 Outboard motors
840734 Of a cylinder capacity exceeding 1,000 cc
496 Aircraft & spacecraft; parts
8802 Other aircraft (for example, helicopters, aeroplanes); spacecraft (including satellites) and suborbital and spacecraft launch vehicles.
880211 Of an unladen weight not exceeding 2,000 kg
880230 Aeroplanes and other aircraft, of an unladen weight exceeding 2,000 kg but not exceeding 15,000 kg
880240 Aeroplanes and other aircraft, of an unladen weight exceeding 15,000 kg

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