Business news from Ukraine


25 April , 2016  

KYIV. April 25 (Interfax-Ukraine) – A member of the parliamentary committee for healthcare Kostiantyn Yarynich has registered two bills with incentives for medicine production investment projects in Ukraine in order to reduce the tax burden on imports of equipment for medicine production.

He proposed amending to the Customs Code (bill No. 4509) and Tax Code (bill No. 4508) is made.

Yarynich told Interfax-Ukraine that bill No. 4509 implies the reduction of tax burden on economic entities that will implement investment projects to produce medicines and medical products.

The document envisages exemption from paying imports duty on equipment for production of medicines and medical products until January 1, 2017, using concrete Ukrainian foreign trade codes, which would make impossible abuse of law in applying the tax benefit.

The document says that imports duty exemption will apply only if imported equipment is used by taxpayers for own production of medicines and medical products if identical goods with similar quality indicators are not made in Ukraine.

Bill No. 4508 says that profit that taxpayers will receive from the above-mentioned investment projects and equipment used in production of medicines will be taxed at a zero rate in the first five years of the project implementation, 8% in next five years and 18% in 10 years.

The taxation regime applies if total investment for the project is no less than EUR 15 million, investors are to create over 200 jobs, salaries of workers are to be no less than 2.5 minimum salaries in Ukraine and income of taxpayers received from the investment project is to be no less than 75% of their total income over reporting period.

The document foresees the exemption from VAT for imports of equipment for production of medicines and medical products, including active pharmaceutical ingredients, if the equipment is used for the enterprise’s own production, it was made no more than three years ago before it was imported to Ukraine, it is not used, is not excisable and identical imported goods with similar quality indicators are not made in Ukraine.