Наталя Хандусенко Hot News 21 August 2025, 12:48

The Rada adopted a total of two key bills that lay the foundation for the implementation of the Defence City regime

Today, August 21, the Verkhovna Rada of Ukraine adopted in the second reading and in total two revised draft laws on a special tax regime for Ukrainian defense enterprises Defence City.

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The Rada adopted a total of two key bills that lay the foundation for the implementation of the Defence City regime

Today, August 21, the Verkhovna Rada of Ukraine adopted in the second reading and in total two revised draft laws on a special tax regime for Ukrainian defense enterprises Defence City.

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

Let us remind you that we are talking about 2 bills:

No. 13420 — on amendments to the Tax Code of Ukraine and other laws of Ukraine regarding support for enterprises of the defense-industrial complex;

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.

Before the second reading, these draft laws were significantly finalized by the Verkhovna Rada Committee on Finance, Tax and Customs Policy, together with the Ministry of Defense of Ukraine and in close cooperation with business.

Key provisions:

The Defence City legal regime is being introduced until January 1, 2036 (or until Ukraine joins the EU).
Instead of the List of Defense Industry Enterprises, a Defence City Register is being created under the management of the Ministry of Defense.
Rules for residents are defined: the status, conditions for obtaining it, and control are determined by the Law "On National Security of Ukraine".
The resident's share of qualified income will be from 75% (for aircraft manufacturing - from 50%).

Resident support tools:

tax benefits (exemption from income tax subject to reinvestment, land, real estate and eco-tax);
simplified customs procedures;
simplified export control of military goods;
the possibility for the NBU to establish specific features of currency supervision;
supporting relocation and improving the safety of production facilities.

Diia.City United criticized Defence City and called on the Verkhovna Rada to take into account the needs of technology businesses

The Rada took a half-step towards implementing the Defence City regime. What bills were adopted in the first reading?

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