The Law

The state has simplified and lowered the tax requirements and repealed with a new taxing system the investor has to opportunity to file on electronic claim for VAT refund. (A valuable related resource: Nigeria). Requirements for the minimum capitalisation of companies have been softened down. There is automatic refund mechanism for exporters and natural persons, receiving dividends from the Ukrainian companies, only get a low 5% taxation (as opposed to the previous numbers 15% tax). Several industries, such as light industry, shipbuilding and aircraft construction, farm and construction machinery industries, hotel business and alternative energy industry receive the tax holiday for 10 years. The Law "On industrial parks in Ukraine" is worth a separate mention. Adopted in the first reading, it is based on successful experience of industrial park construction in the Eastern Europe (such as that of Czech Republic). The Law what drafted with the assistance of the leading international experts via Project LINK (United States) and its implementation has already begun in the several regions of Ukraine. The Law on concessions (private-public partnership in lease and concessions of the state-owned entities) is therefore aimed at adjusting the requirements to meet the needs of the investor and investment to make the process easier. What role does the State Agency play in the investment market of Ukraine? The State Agency for investment and national projects is a central executive body to safeguard the implementation of the state policy in the sphere of investment activities and national projects management the projects of strategic importance that provide development of the priority industries in economy of Ukraine. The Agency bears the primal responsibility for the implementation of the investment reform in Ukraine, the key principles of which are: project management personnel responsibility priority of investment funds over budget partnership and cooperation with leading companies of the world the investment reform in Ukraine is the complex of mechanisms, projects and institutions, that act combined with a synergistic aim to radically change the procedures of state development projects funding, to make the best use of the limited state resource as means of building partnership with the private capital and to build the infrastructure, necessary for investment allocation and substantial increase in the investment inflow.