ANNOUNCEMENT 01 Jan 2011

In January 2011, the government of Ukraine announced a targeted tax change.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
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 SECTORS