Tax incentives for industrial park participants: 2026 guide

25.07.2026

Tax incentives for industrial park participants are a direct way to save capital and accelerate growth: profit exempt from taxation stays within the company and is reinvested in production. Here is who is eligible, on what conditions the incentive applies, how to apply for it and how the released funds may be spent.

Who is eligible for tax incentives

Only industrial park participants whose activities are carried out within the park territory.
Permitted activities (NACE): manufacturing (sections 10; 11.07; 13–17; 20–33, with exceptions); waste collection, treatment, recovery and recycling (section 38, excluding disposal); scientific research and development (section 72).
Production of excisable goods is prohibited — except vehicles from the permitted list.
Legal entities with offshore participation or from the FATF blacklist are not admitted.

Conditions of application

The term is 10 consecutive years, provided the industrial park participant status has not been interrupted.
Activities are carried out exclusively within the industrial park.
Accrual and payment of dividends is prohibited throughout the entire period.
Loss of any condition means cancellation of the incentive from the moment of the breach.

How to apply for the incentives

Prepare an application in free form addressed to the controlling authority (under clause 42.4 of the Tax Code).
State in the application: the start date (the 1st day of a month of a quarter); the legal basis (clause 142.4 of the Tax Code); details of the industrial park (name, code, territory); the NACE codes of the activities.
Submit it through the Electronic Cabinet or by letter.
If the tax service does not refuse within 10 business days, tacit consent applies.
The incentive is effective from the date stated in the application, but not earlier than the date of submission.

How to use the released funds

The released funds must be used exclusively to develop activities within the industrial park — by 31 December of the following year.

Permitted areas of spending are defined by Resolution No. 1095 of 30.09.2022:

creation or re-equipment of the material and technical base;
expansion of production;
implementation of new technologies.

Failure to use the funds results in loss of the incentive, submission of an adjusting tax return, a fine and a penalty.

How to report in the tax return

Line 10 “Special marks” — the mark “industrial park participant”.
Line 05 PZ — profit exempt from taxation.
Annex PZ: table 1 — calculation; table 2 — incentive code 11020401.
Annex PP — accounting of released funds: used / unused.
The return form is set by Order of the Ministry of Finance No. 897 of 20.10.2015.

What is taxed even when the incentives apply

Transfer pricing (Article 39 of the Tax Code): additional charges in lines 06.4.1–06.4.2 of the return.
Controlled foreign companies (CFC): CFC profit is reported in line 06.1 CFC separately from the incentivised activity.

Common mistakes

submitting the application without stating the start date;
accruing dividends during the incentive period;
carrying out activities outside the industrial park;
using the released funds too late.

Control and liability

In case of a breach, the incentive is cancelled from the beginning of the period.
Additional tax, penalty and fine (Article 50 of the Tax Code).
An adjusting tax return must be submitted.

Useful links

Prepared on the basis of the guide for industrial park participants “Tax incentives”, following the clarifications of the State Tax Service of Ukraine.