The President of Ukraine signed the Law "On Amendments to the Tax Code of Ukraine concerning the registration of persons as taxpayers" adopted by the Parliament on September 5, 2013. The law is intended to simplify procedures to start business in Ukraine and reduce time required to apply to the state tax authorities for registration of a VAT payer or choosing a simplified system of taxation. In addition, today the Parliament of Ukraine supported the first reading of a bill aimed at encouraging and attracting investments in Ukraine. The bill envisages state support of investment activity in the following spheres:
- production and storage of food products,
- manufacturing of computers, electronic and optical products, machinery and equipment, electrical equipment, motor vehicles and other vehicles,
- establishment of waste processing facilities,
- construction, reconstruction and technical re-equipment in the sphere of transport infrastructure, heating, centralized water supply and drainage.
The list of investment projects in priority sectors of economy will be approved by the Cabinet of Ministers of Ukraine. The bill proposes to establish that state support for investment projects in priority sectors will be provided to economic entities after the due state registration of such projects and consultations with the Council of Ministers of Crimea, regional, Kyiv and Sevastopol city state administrations, as well as the approval of the Cabinet of Ministers of Ukraine.
According to the bill, an investment project in priority sectors of economy can be a project for a newly created or existing reconstructed or re-equipped enterprise, as well as a project that will meet the criteria of ensuring competitiveness of production, energy efficiency and labor productivity, facilitating modernization of national economy through introduction of modern technology, reduction of environmental pollution.
An investment project in a priority sector will be a project, the total budgeted cost of which exceeds the equivalent of EUR 12 million for large business entities, EUR 1 million for medium business entities and EUR 500 thousand for small businesses, and where the number of new jobs exceeds 250 for large business entities, 50 for medium business entities and 25 for small businesses.