The Rada Finance Committee supported two key bills to implement the Defence City regime

This was announced by Danylo Hetmantsev, Chairman of the Committee on Finance, Tax and Customs Policy.

This concerns Bill No. 13420 — on amendments to the Tax Code of Ukraine and other laws of Ukraine regarding support for enterprises of the defense-industrial complex. Also, Bill No. 13421 — on amendments to Section XXI “Final and Transitional Provisions” of the Customs Code of Ukraine regarding support for enterprises of the defense-industrial complex.

"We held a number of difficult working meetings with key enterprises of the defense-industrial complex to take into account their proposals and practical comments," said Getmantsev.

What changes did the Committee make to the draft laws:

• the Defence City legal regime is being introduced, which will be in effect until January 1, 2036 (but no later than the year of Ukraine's accession to the EU);
• instead of the List of Defense Industry Enterprises, a Defence City Register is envisaged, the maintenance of which will be ensured by the Ministry of Defense of Ukraine;
• requirements for Defence City residents, procedures and grounds for granting, terminating and losing this status, as well as the control procedure are regulated by the Law of Ukraine "On National Security of Ukraine";
• The share of qualified income of a Defence City resident must be at least 75% of total income (except for aircraft manufacturing entities, for which it must be at least 50%).

The following support tools are also offered to Defence City residents:

• tax benefits (exemption from income tax subject to reinvestment, as well as exemption from land tax, real estate tax, environmental tax);
• simplification of customs procedures;
• simplified export control for military goods (without obtaining authorization);
• the possibility for the NBU to establish specific features of currency supervision and currency transactions;
• support in the process of relocation and increasing the security of defense industry production facilities.

Next, these two revised bills are to be considered by the people's deputies in the hall of the Verkhovna Rada.

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