Defence City: Zelenskyy signs laws establishing special legal regime
Ukrainian President Volodymyr Zelenskyy has signed laws establishing Defence City, a special legal regime designed to support domestic defence industry companies.
Source: Defence Minister Denys Shmyhal
Details: On 21 August, Ukrainian MPs passed two bills:
- No. 13420 On Amendments to the Tax Code of Ukraine and Other Laws of Ukraine on Supporting Defence Industry Companies
- No. 13421 On Amendments to Section XXI Final and Transitional Provisions of the Customs Code of Ukraine on Supporting Defence Industry Companies
According to the official website of the Verkhovna Rada (Ukrainian parliament), bill No. 13420 has been returned with the president’s signature, but as of 13:50, no such update had appeared for No. 13421.
Shmyhal reiterated that Defence City offers a range of incentives for arms and military equipment manufacturers, including:
- Exemption from corporate income tax (subject to reinvestment of profits);
- Exemption from land and property tax (on land and property used in production);
- Exemption from environmental tax;
- Simplified customs procedures;
- Simplified rules for international transfers of defence products;
- State-supported relocation and enhanced protection of production facilities.
"Defence industry manufacturers of strategic importance for national security, who also meet the transparency requirements, will be able to openly join Defence City," Shmyhal added.
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