Draft Law of Ukraine

"On State Support to High Technologies in Ukraine"

This draft outlines economic and organizational measures to encourage enterprises, institutions and organizations carrying out in Ukraine activities in the field of high technologies. The Cabinet of Ministers of Ukraine shall define the list of such enterprises, institutions and organizations.

The measures to encourage development of high technologies include:

• exemption from taxation of researches and developments implemented in the field of high technologies for the funds from the State budget;
• repayment by installments of current arrears during the period of five years;
• writing off tax arrears (by fines, fees and financial sanctions);
• exemption for the period to January 1, 2009 from local taxes and duties to the State budget of Ukraine and off budget funds;
• exemption to January 1, 2009 from land tax;
• establishment of the term for making settlements for export-import transactions that shall not exceed 180 calendar days;
• introduction prior to January 1, 2009 of 20% annual norm for accelerated depreciation of capital assets of the Group 3.

Besides, it is envisaged to exempt form import duty and VAT transactions in importation on the customs territory of Ukraine of raw materials, materials, components, equipment and machinery per the list established by the Cabinet of Ministers of Ukraine to be used in advanced technological production