The Council Committee approved the relaxation of requirements for the provision of tax benefits within the framework of the "investment" law

At its meeting on April 5, the Verkhovna Rada's Committee on Economic Development approved draft law 8138 on amendments to the law "On State Support of Investment Projects with Significant Investments in Ukraine" (the so-called "investments" law) for consideration in the first reading. This was announced by the head of the subcommittee on interaction between the state and business and investments, People's Deputy Ihor Marchuk ("Servant of the People"), the press service of the parliament reports, writes censor.net.

Illustrative photo

The draft proposal proposes:

• to provide opportunities for the investor to start the implementation of the project 12 months before the conclusion of the special investment contract and to make investments for pre-project works (preparation of the PCD, purchase of land, etc.) but not more than 25% of the total amount of significant investments;
• reduce the requirements for the size of significant investments up to 12 million euros and the number of new jobs created — from 80 to 50 during the investment project's implementation period, which will allow expanding the circle of potential investors;
• allow the applicant to finalize the submitted documents (TEO) within 15 days and give him the opportunity to negotiate the terms of the special investment agreement for a period of up to 2 months, etc.

As reported, the relevant draft law was approved by the government in October 2022. The representative of the government in the Verkhovna Rada, Taras Melnychuk, explained that the proposed changes will allow not only large, but also medium-sized investors to participate in the "investment" program.

In total, since the start of the law "on investments" in January 2021, only five applications have been received for the implementation of large investment projects with a planned financing of UAH 11 billion, but the amount of involved investments is still zero.

The first three applications came from the agricultural holding "Astarta-Kyiv", the thermal insulation manufacturer "OBIO" LLC and the "Interpipe Nico Tube" enterprise. At the end of last year, applications for participation in the program were also submitted by the ski resorts of Bukovel LLC and Slavski LLC.

As a reminder, on February 10, 2021, President Volodymyr Zelenskyi signed the law "On state support of investment projects with significant investments in Ukraine." It provides for the provision of state support to Ukrainian and foreign investors with a total investment of 20 million euros or more.

In February 2020, at the Economic Forum in Davos, President Volodymyr Zelenskyi announced a number of measures designed to attract foreign investors. In particular, at that time it was about the possibility of receiving a personal "investment nanny" from the government and direct investment contracts with the state for projects with investments of more than $100 million.

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