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Frequently asked questions

• What are the conditions for receiving tax and customs incentives for park participants?

  Tax incentives

  • Up to 10 years — the period of the corporate income tax exemption.
  • Reinvestment — the released funds must be directed to the development of the company.
  • Profit distribution limits — accruing and paying dividends is prohibited throughout the whole period.

  Customs incentives

  • Location of the equipment — it may be used exclusively within the territory of the industrial park.
  • 5 years — the designated-use period counted from the date the equipment is imported into the customs territory of Ukraine; alienation and transfer for use are prohibited.

  Detailed guides: tax incentives · customs incentives.

• Which types of activity are allowed in industrial parks?

  The main focus is processing industry, waste recovery and research and development. At the same time, the production of excisable goods is prohibited, with certain exceptions.

• How does another business entity differ from a participant?

  Another business entity may also operate within the park, but it is not required to be registered there as a participant. It may carry out a wider range of activities, but it does not receive state incentives.

• What facilities can be located in an industrial park besides production?

  Besides production, these can be warehouses, offices, logistics, laboratories, training centres and other infrastructure — that is, a complete business environment.

• Can used or foreign equipment be purchased using customs incentives?

  Foreign equipment can be purchased, but only if it is new, has not been used and was manufactured no more than 3 years before the date of import. Only such equipment is exempt from import VAT and duty. Used equipment or older machinery does not qualify for these incentives.

• What happens if a company ceases operations or wants to leave the industrial park early?

  In that case the company loses the status of an industrial park participant. This means losing access to tax, customs and other state incentives. The terms of the agreement with the management company should also be checked, as it may provide for additional obligations.

• Can a sole proprietor become a participant of an industrial park, or is a legal entity required?

  A sole proprietor cannot be a participant of an industrial park, because by law a participant must be registered within the park’s territory, while a sole proprietor’s location is their place of residence. To take part, a legal entity has to be established — an LLC, for example.

• Can participation in an industrial park be combined with processing grants, the 5-7-9 programme or other state programmes?

  Industrial park participants may use other state programmes in parallel — processing grants, 5-7-9 loans or Diia.City. The key requirement is that the company meets the conditions of each individual programme and that the same costs are not financed twice.

• Can electricity be generated on the territory of an industrial park and sold externally?

  Electricity generation is allowed in an industrial park, but only from alternative sources — solar panels, biogas, biomass or energy from organic waste. Selling electricity to the grid is possible, but requires complex licensing, so the most efficient solution is to use the generation for the park’s own needs.