IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

state trading enterprise

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2011 | Removal date: 31 Dec 2014
Still in force

Tax or social insurance relief

On 29 December 2010, a list of resident space industry firms have become eligible for land tax exemption on land used for production purposes. The beneficiaries must participate in the implementation of international treaties of Ukraine on space activity on production of space equipment, but not later than 1 January 2018.
 
These subjects are specified in Resolution No. 1248 of the Cabinet of Ministers of Ukraine of 29 December 2010, that entered into force as of 1 January 2011 and was amended by Resolutions of the Cabinet of Ministers of Ukraine of 25.01.2012, 41, and 01.04.2013, 258.
 
According to the latter document, the following list of subjects of space activities that were eventually exempted from land tax until 1 January 2015 is:

  • State Enterprise "Ukrainian Scientific Research and Design Technological Institute of Elastomer Materials and Products"
  • Joint Stock Company "Chernigov factory for radio appliances"
  • The State Enterprise "Production Association Southern Machine-Building Plant named after A. Makarov"
  • Pavlograd Mechanical Plant State Enterprise "Production Association Southern Machine-Building Plant named after A. Makarov"
  • State-owned enterprise for specialised Instruments"Arsenal"
  • State Research and Production Enterprise "Corporation Kommunar"
  • Public Joint Stock Company "Scientific Research Institute of Radio Engineering Measurements"
  • State enterprise "Kharkiv transport equipment plant";
  • State Enterprise "Scientific-Production Association "Pavlograd Chemical Plant";
  • Public Joint Stock Company "Hartron";
  • Scientific-Production Enterprise HARTRON Arcos Limited Liability Company;
  • Scientific-Production Enterprise HARTRON-PLANT Co. Limited Liability Company;
  • State Enterprise "Lviv state factory "Lorta".

A conservative approach has been applied in the calculation of the duration of this measure. Its validity is assumed to be until 1 January 2015, and not till the potentially stipulated deadline of 1 January 2018.
 
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 ofmillion UAH in 2011 (approximately 7.82 million USD according to the USD/UAH exchange rate for 31.12.2011), 42.31 million UAH in 2012 (approximately 5.3 million USD according to the USD/UAH exchange rate for 31.12.2012), 64.2 million UAH in 2013 (approximately 8 million USD according to the USD/UAH exchange rate for 31.12.2013) and 63.2 million UAH in 2014 (approximately 4 million USD according to the USD/UAH exchange rate for 31.12.2014), respectively.
 
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

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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