RESTRICTED  WORLD TRADE  
ORGANIZATION  WT/ACC/UKR/116 
15 April 2004 
 (04-1692) 
Working Party on the 
Accession of Ukraine Original:   English 
 
 
 
ACCESSION OF UKRAINE 
 
Submission from Ukraine  
 
Draft Notification of Industrial Subsidies 
 
 
 The following submission, dated 8 April 2004, is  being circulated at the request of the 
Delegation of Ukraine  
 
_______________ 
 WT/ACC/UKR/116 
Page 2  
 
The following description of measures of assistance to industry is in tended solely for the purpose of 
information. Ukraine wishes it to be noted that it does not consider that any of the measures listed 
constitutes a subsidy prohibited by Article 3 of the ASCM. It further notes that analogous 
notifications made by WTO Members under ASCM Ar ticle 25.2 are, in accordance with Article 25.7, 
without legal consequences and that, as indicated in G/SCM/6/Rev.1, such notifications do not 
prejudge the effects of the measure under the SCM Agre ement, or the nature of the measure itself.   
In preparing this notification, Ukraine has taken into account applicable "General Rules" listed in 
G/SCM/6/Rev.1  
(A) HORIZONTAL PROGRAMMES 
- Special Economic Zones and Priority Territories 
Policy objective and/or purpose: 
Eleven "Special economic zones" (also describ ed as "Free Economic Zones or FEZs) and nine 
"Priority Territories with Special Investment Regime s" have been established. They are intended to 
encourage investment, both domestic and foreign, in geographically defined depressed regions to 
offset:  
− Structural unemployment resulting from decommissioning of uneconomic coal mines  
(Donetsk, Lugansk, and Volyn Oblasts); and 
− Structural unemployment resulting from closure of military production complexes 
(Kharkiv and Shostka). 
Economic and social impact of:  
− Accident at Chernobyl NPP (Slavutych and districts and cities in the Zhytomer and 
Chernihiv oblasts); 
− Contamination from Sulphur DGHP Mining and Chemical Mills (Yavoriv district of 
L'viv oblast); and 
− Flooding in Carpathian region. 
In addition, a the special invest ment regime has been establishe d in the Autonomous Republic of 
Crimea aimed at encouraging investments in the public health protection and recreation-tourism 
sectors, preservation and efficient management of av ailable recreation resources, also at industrial 
production development in the peninsula. 
Assistance programs available in a zone or special terr itory are particular to that zone or territory.  
Background and authority: 
The basic enabling authority for the establishment of Special Zones and Priority Territories is 
contained in: 
− Law of Ukraine "On General Principles of Creation and Functioning of Special (Free) 
Economic Zones" of 13 October 1992 (with changes and amendments) No.2673-XIII/92
1. 
Each of the eleven Zones and nine Priority Te rritories is established under a particular statute: 
Zones  
                                                      
1 Referred to in document WT/ACC/UKR/79 page 9.  WT/ACC/UKR/116 
 Page 3 
 
 
Location Duration and date es tablished Legislative basis 
Donetsk, Donetsk Oblast 
 60 years from 21 July 1998 
 Law of Ukraine No. 356 dated 24 December 1998 
"On the Special Economic Zone and Special Regime 
of investment activitie s in Donetsk Oblast". 
Mariupol, Donetsk 
Oblast 
 60 years  from 21 July 1998 
 Law of Ukraine No. 356 dated 24 December 1998 
"On the Special Economic Zone and Special Regime 
of investment activitie s in Donetsk Oblast". 
Uzhgorodskiy and 
Mukachevskiy raions, 
Zakarpatska Oblast 30 years from 9 January 1999 Law of Uk raine No.2322 dated 22 March 2001 "On 
the Special Economic Zone "Zakarpattia'" 
Yavorivskiy Raion, Lviv 
Oblast 20 years from 17 February 1999 Law of Ukraine No. 402 dated 15 January 1999 "On 
the Special Economic Zone "Yavoriv'" 
Kovel, Volyn Oblast 
 20 years from 1 January 2000 President of Ukraine Decree No. 702 dated 
22 June 1999 "On the Special Economic zone 
"Interport-Kovel'" 
Mykolaiv (on the 
territory of ship-building 
enterprises) 30 years from 1 January 2000 
 Law of Ukraine No.1909 dated 13 July 2000 "on the 
Special Economic Zone "Mykolaiv'", Decree of the 
Cabinet of Ministries of Ukraine No.1175 of 
26 July 2000 approving the list of priority economic activities on the territories of priority development in 
Zhytomyr Oblast, Chernigiv Oblast, in the City of 
Shostka, Sumy Oblast and territory of special 
economic zone "Mykolayv'. 
Odesa (on the Territory 
of the Odesa Sea Trade 
Port) 25 years from 1 January 2000 
 Law of Ukraine No.1607 dated 23 March 2000 "On 
the Special (Free) Economic Zone "Porto Franco" on 
the Territory of the Odesa Sea Trade Port" 
Reni, Odesa Oblast 
 30 years from 17 May  2000 
 Law of Ukraine No.1605 dated 23 March 2000 "On 
the Special Economic Zone ‘Reni'" 
Kerch, Autonomous Republic of Crimea 
 30 years from 1 January 2000 
 Law of Ukraine No.2189-III of 21 December 2000 
"On a Special Regime of Investment Activity at 
Territories of Priority Development and the Special 
Economic Zone "Port Krym" in the Autonomous 
Republic of Crimea" 
Slavutych, Kyiv Oblast 20 years from 30 July 1998 
 Law of Ukraine No. 721 dated 3 June 1999 "On the 
Special Economic Zone "Slavutych'" 
Kurortopolis Truskavets, Lviv Oblast 
 20 years from 1 January 2000 
 Law of Ukraine No. 514 dated 18 March 1999 "On 
the Special Economic Zone for Tourism and 
Recreation "Kurortopolis Truskavets"" 
  WT/ACC/UKR/116 
Page 4 Priority Territories  
Special regime of investment 
activity on the territories of 
priority economic 
development in Donetsk 
Oblast 
 Cities of Artemivsk, Vehledar, Horlivka, Dzerzhynsk, 
Dymytrov, Dobropillia, Donetsk, Yenakiyeve, Zhdanivka, 
Kirovske, Kostiantynivka, Kramatorsk, Krasnoarmiysk, 
Krasnyi Lyman, Makiyi vka, Mariupol, Novohrodivka, 
Selidove, Sloviansk, Snizhne, Torez, Shakhtarsk, 
Druzhkivka, Khartcysk, Zugres, Illovaysk as well as the 
Amvroziyivskiy, Volnovaskiy, Kostyantynivsk, Marianskiy 
and Slovanskiy, Starobeshivsk iy and Shahtarskiy raions 30 years from 
21 July 1998 
 Law of Ukraine No. 356 dated 24 December 1998 "On Special Economic 
Zones and Special Regime of Investment Activity  in Donetsk Oblast"; 
Decree of the Cabinet of Ministries of Ukraine No1255 of 11 August 2000 
approving the list of priority econom ic activities on the territories of 
priority development in Donetsk Ob last; Decree of the Cabinet of 
Ministries of Ukraine No1065 of 18 June 1999 approving the Procedure of 
consideration of investment projects th at are realizing in priority economic 
activities on territories of priori ty development in Donetsk Oblast 
Special regime of investment 
activity on the territories of 
priority economic 
development in Luhansk 
Oblast 
 Cities of Brianka, Krasnodon, Sverdlovsk, Pervomaisk, 
Stakhaniv, Krasniy Luch, as well as the Antr аtsytivskiy, 
Kreminskiy and Krasnodonskiy raions 30 years from 
2 February 1999 
 Law of Ukraine No.970 dated 15 July  1999 "On the Special Regime of 
Investment Activity in Territories of Priority Development in Luhansk 
Oblast"; Decree of the Cabinet of Ministries of Ukraine No1968 of 
25 October 1999 "On approving of the lis t of priority economic activities 
in the territory of of priority economic development in Luhansk Oblast 
and  of the Procedure of considerat ion of investment projects that are 
realizing in priority economic activities on territories of priority 
development in Luhansk Oblast" 
Special regime of investment 
activity in Zakarpatska 
Oblast 
 All of Zakarpatska Oblast 
 15 years from 
29 January 1999 Law of Ukraine No.357 dated 24 December 1998 "On a Special Regime 
of Investment Activity in Zakarpatska Oblast", Decree of the Cabinet of 
Ministries of Ukraine No548 of 6 April 1999 "On approving of the list of 
priority economic activities in the te rritory of Zakarpatska Oblast for 
which the Special regime of inve stment activity is applied"   
Special regime of investment 
activity on territories of 
priority development in the 
autonomous Republic of 
Crimea 
 Cities of Yalta, Alushta, Sudak, Feodosia, Kerch, 
Krasnoperekopsk, Armiansk; Krasnoperekopskiy and 
Leninskiy raions 
 30 years from 
1 January 2000 
 Law of Ukraine No.2189-III of 21 December 2000 "On a Special Regime 
of Investment Activity at Territories  of Priority Development and the 
Special Economic Zone "Port Crimea"  in the Autonomous Republic of 
Crimea"; Decree of the Cabinet of Ministries of Ukraine No212-r of 
23 May 2001 "On approval of the Procedure of consideration of 
investment projects that are realiz ing in priority economic activities on 
territories of priority development and in the SEZ "Port Crimea" in the 
autonomous Republic of Crimea, and of the list of priority economic 
activities in the territory  of the autonomous Republic of Crimea, for which 
the Special regime of investment activity is applied" 
Special regime of investment activity in the City of 
Shostka, Sumy Oblast Shostka, Sumy Oblast 
 30 years from 
1 January 2000 Law of Ukraine No. 1251 of 18 November 2003 "On the Special Regime 
of Investment Activity in the City of Shostka of Sumy Oblast", Decree of 
the Cabinet of Ministries of Ukraine No1175 of 26 July 2000 approving 
the list of priority economic activiti es on the territories of priority 
development in Zhytomyr Oblast, Ch ernigiv Oblast, in the City of 
Shostka, Sumy Oblast and territory of  special economic zone "Mykolayv'.; 
Decree of the Cabinet of Ministries of Ukraine No1552 of 
12 October 2000 "On approval of the Procedure of consideration of 
investment projects which are realizi ng in the priority economic activities 
on the territory of the City of Shostka, Sumy Oblast"    WT/ACC/UKR/116
 Page 5Special regime of investment 
activity on territories of 
priority development in 
Zhytomyr Oblast Korostenskiy, Novohrad-Volynskiy, Luhynskiy, 
Narodytskiy, Ovrutskiy, Olevskiy, Malynivskiy, 
Yemilchynskiy, Volodarsko-Voly nskiy raions and the cities 
of Berdychiv, Korosten, Novohrad-Volynskiy 30 years from 
1 January 2000 
 Law of Ukraine No.1276 dated 3 December 1999 "On the Special Regime 
of Investment Activity on Territories of Priority Development in 
Zhytomyr Oblast"; Decree of the Cabi net of Ministries of Ukraine No1205 
of 3 August 2000 "On approval of the Procedure of consideration of 
investment projects that are realiz ing in priority economic activities on 
territories of priority development in  Z h y t o m y r  O b l a s t " ,  D e c r e e  o f  t h e  
Cabinet of Ministries of Ukraine No1175 of 26July 2000 approving the 
list of priority economic activities  on the territories of priority 
development in Zhytomyr Oblast, Ch ernigiv Oblast, in the City of 
Shostka, Sumy Oblast and territory of special economic zone "Mykolayv'. 
Special regime of investment 
activity on the territory of 
the city of Kharkiv 
 Kharkiv 
 30 years from 
1 January 2000 
 Law of Ukraine No.1714 dated 11 May 2000 "On the Special Regime of 
Investment Activity on the Territory of  the City of Kharkiv"; Decree of 
the Cabinet of Ministries of Ukraine No2076 of 11 November 1999 On 
approving of the List of priority econom ic activities on territory of the city 
of Kharkiv for which special regime of  investment activity is applied, and 
of the Procedure of consideration of i nvestment projects that are realizing 
by the subjects of business activity on territory of the city of Kharkiv 
Special regime of investment 
activity on territories of 
priority development in 
Chernihiv Oblast 
 Horodnianskiy, Koriukivskiy, Novhorod-Siverskiy, 
Semenivskiy, Ripkinskiy, Cherni hivskiy, Shchorskiy raions 
 30 years from 
1 January 2000 
 Law of Ukraine No. 1250 of 18 November 2003 "On the Special Regime 
of Investment Activity in Territories of Priority Development in Chernihiv 
Oblast"; Decree of the Cabinet of  Ministries of Ukraine No 1206 of 
3 August 2000 "On approving of the Procedure of consideration of 
investment projects that are realiz ing in priority economic activities on 
territories of priority development in Chernihiv Oblast; Decree of the 
Cabinet of Ministries of Ukraine No1175 of 26July 2000 approving the 
list of priority economic activities  on the territories of priority 
development in Zhytomyr Oblast, Ch ernigiv Oblast, in the City of 
Shostka, Sumy Oblast and territory of special economic zone "Mykolayv'. 
Special regime of investment 
activity on territories of 
priority development in 
Volyn Oblast Novovolynsk, Volyn Oblast 
 30 years from 
1 January 2000 
 Law of Ukraine No.2354 of 5 April 2001  "On the Special Regime of 
Investment Activity on Territories of Priority Development in Volyn 
Oblast"; Decree of the Cabinet of Ministries of Ukraine No.2210 of 
6 December 1999 "On approving of the List of priority economic 
activities on territories of priority de velopment in Volyn Oblast and of the 
Procedure of consideration of investme nt projects that are realizing in 
priority economic activities on territories of priority development in Volyn 
Oblast " 
 WT/ACC/UKR/116 
Page 6  
 
 Incentives offered in the form of import duty and inte rnal tax exemptions and deferrals are inscribed 
in the relevant tax laws:  
Corporate Income Tax: 
− Law of Ukraine "On Corporate Income Ta x" as of 28 December 1994 No. 334/94-VR 
(with changes and amendments). 
Land Tax: 
− Law of Ukraine "On Land Tax" as of 3 July 1992 No. 2535-XII (with changes and 
amendments). 
Import duties: 
− Law of Ukraine "On the Common Customs Ta riff" 5 February 1992 No. 2097-XII (with 
changes and amendments); and 
− Law of Ukraine "On Customs Tariff of Uk raine" as of 5 April 2001 No. 2371-III (with 
changes and amendments). 
VAT: 
− Law of Ukraine "On Value Added Tax" as of  3 April 1997 No. 168/97 (with changes and 
amendments) 
Form: The enterprises locating in zones or priority te rritories benefit from a number of assistance programs 
mainly in the form of exemptions, or reductions in  direct and indirect taxes.  Programs vary as 
between individual zones and territories and are summarized below: 
Zones
 
Name of 
FEZ/Form of 
Assistance Special 
Customs 
Zone Regime Exemption 
from income 
tax Exemption 
from taxation 
of investments Exemption 
from Import 
Duty and VAT Exemption from land tax 
Azov + rate – 20% + - + (for duration of site 
preparation) 
Donetsk 
 + 
 rate – 20% 
 + 
 - 
 + (for duration of site 
preparation) 
Zakarpattia + rate – 20% - - - 
Yavoriv, including 
Krakovets 
Autoport + (only for 
Krakovets 
Autoport)  
 + (5 years), 
next -50%  
 - 
 + (5 years) 
 + (3 years), next -50% of 
existing rate 
Slavutych 
 - 
 + (3 years), 
from Year 4 to 
year 6  -50% 
of existing rate + 
 + (5 years) 
 + (3 years), Year 4 to Year 6 -
50% of existing rate 
 
Kurotopolis 
Truskavets 
 - 
 + (3 years), 
from Year 4 to 
Year 6 -50% 
of existing rate + 
 + 
 + (for duration of site 
preparation), next 10 years - 
50% of existing rate 
Porto-Franco  + 
 +(3 years), 
from Year 4 to 
Year 6 - 50% 
of existing rate + 
 - 
 - 
  WT/ACC/UKR/116 
 Page 7 
 
 
 Name of 
FEZ/Form of 
Assistance Special 
Customs 
Zone Regime Exemption 
from income 
tax Exemption 
from taxation 
of investments Exemption 
from Import 
Duty and VAT Exemption from land tax 
Reni + rate – 20% + - - 
Port Krym + rate – 20% + - + (5 years) 
Interport Kovel + rate – 20% - - + (5 years) 
Mykolaiv 
 + (ship-
building dock territory 
only) 
 + (3 years), 
from Year 4 to Year 6 - 50% 
of the existing 
rate, from 
Year 4 to 10 
years -
reinvestment + 
 + (5 years) 
 + (5 years) 
 
 
Priority Territories: 
Name of 
territory Exemption from income tax Exemption 
from taxation 
of investments Exemption 
from payment 
of import duty 
and VAT Exemption from payment for 
land 
Donetsk Oblast  + (3 years) Year 4 to Year 6  - 
50% of existing rate + 
 + (5 years) 
 - 
 
Luhansk Oblast 
 + (3 years) Year 4 to Year 6 - 
50% of existing rate + 
 + (5 years) 
 + (5 years) 
 
Zakarpatska 
Oblast + (2 years) Year 3 to Year 5 - 
50% of existing rate + 
 + (5 years) 
 - 
 
Autonomous Republic of 
Crimea + (3 years) Year 4 to Year 6  - 
50% of existing rate + 
 + (5 years) 
 + (5 years) 
 
City of Shostka, Sumy Oblast + (3 years) Year 4 to Year 6 - 
50% of existing rate + 
 + (5 years) 
 + (5 years) 
 
Zhytomyr Oblast + (3 years) Year 4 to Year 6  - 
50% of existing rate + 
 + (5 years) 
 + (5 years) 
 
Kharkiv City + (3 years) Year 4 to Year 6  - 
50% of existing rate + 
 + (5 years) 
 + (5 years) 
 
Chernihiv 
Oblast + (3 years) Year 4 to Year 6 - 
50% of existing rate + 
 + (5 years) 
 + (5 years) 
 
Volyn Oblast + (3 years) Year 4 to Year 6 - 
50% of existing rate + 
 + (5 years) 
 - 
 
 
Notes:  
− + = benefit program applies for the full duration of the zone/territory as set out in base legislation. 
− + (number of years) = benefit program applies on ly for the initial period of the years shown.  
− = enterprises in the zone/territory are not eligible for the benefit program shown. 
Explanation of Benefits: 
There follows an explanation of the benefits avai lable to enterprises investing in zones/priority 
territories as indicated in the preceding tables. 
- Special Customs Zone Regime (Zones only) 
Enterprises investing in a zone where there is a Special Customs Zone Regime benefit from certain 
tax exemptions at the time of transactions (see the table below). WT/ACC/UKR/116 
Page 8  
 
 Transaction VAT Excise Duty Custom Duty (Import 
or Export) 
Importation of goods (excluding excisable 
goods) outside custom territory of Ukraine on 
the territory of SCZ Not Applied  Not Applied 
Importation to the custom territory of 
Ukraine of goods from the territory of SCZ Applied Applied Applied 
Importation to the custom territory of 
Ukraine of goods from the territory of SCZ 
that were manufactured or processed in the 
SCZ Applied Applied Not 
Applied* Applied 
Exportation from the SCZ territory to outside 
custom territory of Ukraine of goods that 
were manufactured or processed in the SCZ Zero Rate Not Applied Not Applied 
Exportation from the SCZ territory to outside 
custom territory of Ukraine of goods that 
were imported to SCZ from the outside 
custom territory of Ukraine Not Applied Not Applied Not Applied 
Exportation of goods (excluding excisable 
goods) from the custom territory of Ukraine 
to SCZ territory Zero Rate  Not Applied 
 
In case of transit custom charges applied as usual acco rding to Ukrainian legislation.  And in all other 
cases taxes applied as usual according to Ukrainian legislation. 
Exemption from income tax: 
Enterprises investing in a zone or territory enjoy a short-term tax holiday.  According to the regime 
applying in the specific zone or territory (see tables ), enterprises are exempted for an initial period and 
then are liable for tax at a reduced (50 per cent) rate. 
Exemption from taxation of investments: Sum of investments is excluded from the gross re venue of enterprise for the aim of taxation. 
Exemption from payment of import duties: 
Enterprises with the status of a zone/territory subj ect are entitled to import free of import duty foreign 
origin equipment as well as material and parts used  as inputs. In some zones and all territories this 
exemption is of limited duration (five years). State authorities determine lists and amounts of 
imported equipment materials and part s eligible for this special tax treatment (this list with amounts is 
integral part of investment project).  This pr eferential regime does not applied to excisable goods. 
For some zones (see table above) products of a zo ne entering the customs territory of Ukraine are 
charged no duty and are exempted from payment of import duties on imported material and other 
inputs provided the product is deemed a zone produc t in accordance with Ukraine's standard rules of 
origin. Generally, zone origin is established when: 
− products created by processing in the zone are classified differently (at the level of any 
first four digits of H.S. code) from the imported materials and parts used; and/or  
− value added in the zone is at least 50 per cen t of the declared value of the final product. 
Exemption from payment of VAT 
                                                     
 
* Only to SEZs "Azov", "Donetsk", "Zakarpattia" and "I nterport Kovel"  WT/ACC/UKR/116 
 Page 9 
 
 
 Enterprises with the status of a zone/territory s ubject are exempted from payment of VAT on same 
products (and for the same periods) that customs du ties exemptions apply.  SEZ enterprises of Special 
Customs Zone are also exempted from payment of VAT (zero rate) on the same products of domestic origin. This preferential regime does not applied to excisable goods. 
Zone products entering the customs territory of Ukra ine, are liable to full payment of internal taxes 
(VAT and excise) on the full value of the final product.  
Exemption from land tax: Enterprises investing in a zone or priority territory  where the exemption applies are either exempted 
from the standard land tax or are liable at a reduced rate in accordance with the regime indicated in 
the tables under "Form" above.  
Beneficiaries: 
Enterprises from any sector (excluding gambling business)  may invest in a zone or priority territory. 
Individual zone managements, in consultation with  the national Government, have established lists of 
business activities eligible for zone status.  A si milar process is undertaken by local authorities 
responsible for managing priority territories.  Su ch eligibility lists, which reflect local resource 
endowment and available labour skills, are then inscr ibed in national legislation (see reference to 
relevant Decrees of the Cabinet of Ministers Of Ukraine in the "Background and Authorities" tables). 
In most zones and territories, investing enterprises are required to be legal persons. An enterprise's 
investment in a zone/territory is approved by th e management body established for the zone or the 
relevant local authority responsible for the priori ty territory in case of favourable reception after 
expertise by the central government authorities.  Approval conditions include compliance with the 
zone/territory's programs of development as well as  programs of economic, technological and social 
development set by the state.  
In some zones and all territories minimum leve ls of investment have been established: 
SEZ Investment Project Cost 
Reni At least US$ 200,000 
Porto-franco at Odessa 
Commercial sea Port At least US$ 1 million 
Slavutych At least US$ 200,000 
Port Crimea At least US$ 100,000 
Mykolayiv At least: 
 
US$ 500,000- in food-processing and agricu ltural produce processing industries;  
US$ 700,000- in construction,  energy and transport;  
US$ 1 million – in machine building and instrument building;  
US$ 3 million – in shipbuilding industries.  
Yavoriv At least US$ 500,000 (excludi ng projects of technological park) 
Priority Territories in  
Chernihiv Oblast At least: 
 
US$ 200,000 – in agriculture, food-processing and agricultural produce processing 
industries, light industry, pulp and pape r industry, wood processing, furniture 
production, health protection and education; 
US$ 300,000 – in construction, t ourist and recreation industry 
US$ 500,000 – in extractive industry, mach ine and equipment building, non-metal 
mineral products, chemical production, transport. 
Volyn Oblast At least US$ 200,000 – in all priority business activities WT/ACC/UKR/116 
Page 10  
 
 SEZ Investment Project Cost 
The city of Kharkiv At least: 
 
US$ 3 million – in metallurgy and metal working, machine and equipment building, 
building of electrical, electronic and transport equipment; 
US$ 1 million – in producing of electricity, gas, water, coke, other non-metal 
mineral products, in transport, communicati ons, in metal waste and scrap working.  
US$ 700,000 – in construction, sanitation,  scavenging and waste working, in 
chemical production, furniture, pulp and paper industry, printing industry; 
US$ 500,000 - in food-processing and agricu ltural products processing industry, 
textile and clothing industry, tanning and shoe manufacturing industry, in health 
protection and education, in public assist ance and in research and development in 
natural and technical sciences. 
Zhytomyr Oblast At least: 
 
US$ 200,000 - in agriculture, food-processi ng industry, textile industry, pulp and 
paper industry, wood processing, furn iture production, clothes and furs 
manufacturing, health pr otection and education; 
US$ 300,000 – in construction 
US$ 500,000 – in extractive industry, mach ine and equipment building, mineral 
material products, chemical  production, transport. 
the City of Shostka, Sumy Oblast At least: 
 
US$ 200,000 - in food-processing industry an d agricultural products processing, 
wood processing and wood wo rking, health  protection; 
US$ 500,000 – in construction, waste working, producing electricity by 
thermoelectric power station and in distribution of heat; 
US$ 1 million – in machine and equipment building, powder metallurgy and 
chemical production. 
Autonomous Republic of  Crimea At least: 
 
US$ 100,000 – in activity for protection of hi storical and natural resources, research 
and development in informati on infrastructure, culture and sport, consumer services, 
territory cleaning, forestry, production of sport and fancy goods, toys, souvenirs; 
US$ 200,000 - in health protection and pub lic assistance, in agriculture, fish 
industry, food-processing and agricultural produce processing industries, textile 
industry, wood working, furniture production; 
US$ 500,000 – in activity of health and resort  centers, hotel and restaurant business, 
transport and communications, in  construction, waste working, tourism services, rest 
and entertainment services. 
US$ 1 million – in extractive industry, pr ocessing industry, electricity, gas and 
water production. 
Zakarpatska Oblast At least US$ 200,000 – in all priority business activities 
Luhansk Oblast At least: 
 
US$ 500,000 - in agriculture, food-proce ssing and agricultural produce processing 
industries, health protection; 
US$ 700,000 – in construction and transport industry; 
US$ 1 million - in extractive industry, el ectrical energy and coke production, 
chemical production a nd machine building. 
Donetsk Oblast At least: 
US$ 1 million (US$ 250,000 – for small enterprises) - in all priority business 
activities 
 
Once approved, the investment is registered and th e investing enterprise enjoys the status of zone 
subject. The enterprises enters into a contractual ag reement with the zone's/territory's management 
authority in accordance with a Model Agreement set  out in Resolution No.1199 of the Cabinet of 
Ministers of Ukraine of 5 July 1999 (with changes and amendments).   WT/ACC/UKR/116 
 Page 11 
 
 
 Amount: 
Costs to state budget of special regimes in place in zones and priority territories are: 
Exemption from income tax; 
Year SEZ, thousand UAH Priori ty Territories, thousand UAH 
2000 17,244.0 80,728.1 
2001 22,736.9 185,664.9 
2002 9,381.9 234,259.1 
 
Exemption from import duties; 
Year SEZ, thousand UAH Priori ty Territories, thousand UAH 
2000 13,135.7 66,815.0 
2001 27,401.2 206,299.9 
2002 208,310.7 470,729.0 
 
Exemption from VAT; and 
Year SEZ, thousand UAH Priori ty Territories, thousand UAH 
2000 22,137.8 115,885.1 
2001 23,347.0 108,548.9 
2002 105,050.2 72,133.0 
 
Exemption from Land Tax. 
Year SEZ, thousand UAH Priori ty Territories, thousand UAH 
2000 269.8 227.5 
2001 585 400.7 
2002 3,477.7 1,257.8 
 
Duration: For the duration of the benefits available in zone s and priority territories, see above Tables under 
"Background and Authorities  
Trade effects: It is not possible to estimate what, if any, tr ade effects may result from the use of the programs 
described.  
B. TECHNOLOGICAL PARKS 
Policy objective and/or purpose Encourage investment, promotion of resear ch and development of new technologies. 
Background and authority The basic enabling authority for the establishmen t and functioning of the technological parks is 
contained in: WT/ACC/UKR/116 
Page 12  
 
 - Law of Ukraine "On Special Regime of Investment and Innovation Activity of the 
Technological Parks" of 16 July 1999 No. 99 1-XIV (with changes and amendments); and 
- Decree of the Cabinet of Ministers of Ukraine No. 2311 of 17 December 1999 (with changes 
and amendments) approving the Procedure of C onsideration and Approval of the Priority 
Directions of Activity of the Technological  Park, the Procedure of Consideration and 
Registration of Investment and Innovation Projects Which Are Implementing in the Priority 
Directions of Activity of the Technological Park, the Procedure of Control of Using for a Specified Purpose of Material, Equipment, Com ponent Parts that are Imported in Ukraine for 
Implementation of Investment and Innovation Proj ects in the Priority Directions of Activity 
of the Technological Park. 
Incentives offered in the form of import duty and intern al tax exemptions are inscribed in the relevant 
tax laws. 
Corporate Income Tax: 
- Law of Ukraine "On Corporate Income Tax" as of 28 December 1994 No. 334/94-VR (with 
changes and amendments). 
Import duties: 
− Law of Ukraine "On the Common Customs Ta riff" 5 February 1992 No. 2097-XII (with 
changes and amendments); and 
− Law of Ukraine "On Customs Tariff of Ukra ine" as of 5 April 2001 No. 2371-III (with 
changes and amendments). 
VAT: 
- Law of Ukraine "On Value Added Tax" as of 3 April 1997 No. 168/97 (with changes and 
amendments). 
Form: 
Tax exemptions. Explanation of Benefits: Exemption from income tax. Sums of income tax are accumulated on special account and used for science, scientific and technical 
activity, development of the park's scientific an d technological and research and exploratory 
development basis only. 
Exemption from payment of VAT: The same as for income tax. Exemption from payment of import duties: 
Materials, equipment, component parts used as i nputs in investment projects could be imported duty 
free if they are not produced in Ukraine or domes tically produced but do not meet the technical 
requirements or international standards.  WT/ACC/UKR/116 
 Page 13 
 
 
 The list and amounts of exempted inputs should be the integral part of investment project. 
This regime does not applied to the excisable goods (excluding goods of the tariff codes 852110310, 
852110390, 852810). 
Beneficiaries: Beneficiaries of the favourable regime are technolog ical parks, their participants, branches and joint 
enterprises which are implementing the investment and innovation projects in priority directions. 
Technological park- a legal person or association of legal persons which are implementing the 
investment and innovation projects, impli cation of high technology developments. 
Priority directions for each park are develope d according to the Law of Ukraine "On priority 
directions of science and technology" of 11 July 2001 No. 2623-III and approved by the Presidium of 
the National Academy of Science and central govern ment authority responsible for science issues.  
Amount: 
 2001, million UAH 2002, million UAH 9 months of 2003, 
million UAH 
Exemption from income tax 10,775 17,765 26,005 
Exemption from payment of VAT 15,630 63,845 96,776 
Exemption from payment of import duties 6,395 7,492 15,694 
 
Duration: The favourable regime for technological park s established for the period of 15 years since 
1 January 2000.  The parks enjoy this regime duri ng first five years of implementing the investment 
and innovation project in priority directions.  
Trade effects: It is not possible to estimate what, if any, tr ade effects may result from the use of the programs 
described.  
(B)  SECTORAL PROGRAMMES 
- Introduction The legislative bases for Ukraine's S ectoral assistance programs are found in: 
− Enabling legislation specific to the sector itself (shipbuilding, automotive etc.) cited 
below for each Sector; and 
− The law applying the particular tax measure  under for which assistance is provided 
(exemptions or deferral for import duties, VAT etc.) 
The Sector specific enabling legislation is identif ied under each of the assisted sectors listed below. 
The relevant tax laws providing benefits to enterprises in assisted sectors are:  WT/ACC/UKR/116 
Page 14  
 
 Import duties: 
− Law of Ukraine "On the Common Customs Tariff" 5 February 1992 No2097-XII (with 
changes and amendments); and 
− Law of Ukraine "On Customs Tariff of Ukra ine" as of 5 April 2001 No.2371-III (with 
changes and amendments). 
VAT: 
− Law of Ukraine "On Value Added Tax" as of 3 April 1997 No.168/97 (with changes and 
amendments). 
Excise: 
− Decree of the Cabinet of Ministers of Ukraine "On Excise Duty" as of 
26 December 1992, No.18-92 (with changes and amendments); and 
− Law of Ukraine "On Excise Duty and Import Duty Rates for Some of Vehicles" as of 
24 May 1996 No.216/96-VR (with changes and amendments). 
Income Tax: 
− Law of Ukraine "On Corporate Income Tax" as of 28 December 1994 No334/94-VR 
(with changes and amendments). 
Land Tax: 
− Law of Ukraine "On Land Tax" as of 3 July 1992 No. 2535-XII (with changes and 
amendments). 
- Fisheries  
Policy objective and/or purpose: 
Development of the sea fishery industry. 
Background and authority: 
This measure was introduced by the Law of Ukrain e "On introduction of some changes to some laws 
on taxation" No. 794/97 of 30 December 1997  
Form: Exemption from VAT on importation. 
Goods of sea fishery fished or manufactured  by Ukrainian ships are exempted from VAT on 
importation of these goods to the customs territory of  Ukraine.  Further sale of these goods is taxed. 
This measure (with respect to VAT exemption) w as withdrawn by the Law of Ukraine "On the State 
Budget of Ukraine for 2004" as of 27 November 2003, No. 1344-IV. 
Beneficiaries: 
Ships registered in the State Register of Ships of Ukraine or in the Ships Book of Ukraine.  WT/ACC/UKR/116 
 Page 15 
 
 
 Duration: 
Since 1998 till the end of 2003 Trade effects: It is not possible to estimate what, if any, tr ade effects may result from the use of subsidies. 
- Shipbuilding 
Policy objective and/or purpose: 
The overall objectives for providing assistance to the ship building industry are to:  
− Promote better use of the industry's existi ng production and Research and Development 
facilities; and  
− Encourage new investment in the industr y to achieve greater efficiency and 
competitiveness.  
Background and authority: 
The subsidy measures listed below are provided un der: Law of Ukraine "On Measures of State 
Support for the Ship-Building Industry in Ukraine" as of 18 November 1999, No. 1242-XIV (including changes and amendments introduced  in accordance with the Law of Ukraine as of 
13 December 2001, No. 2892-III).  
Some of measures were withdrawn by the Law of Ukraine "On the State Budget of Ukraine for 2004" 
as of 27 November 2003, No.1344-IV. 
Form: Deferral of Corporate Income Tax. At option of an eligible shipbuilder, advance paym ents received from a customer may be placed in a 
special account and exempt from withholding tax. Funds in such accounts may only be used to meet 
costs associated with fulfilling th e contract under which the advance payment is made. In the fiscal 
year in which the builder delivers the ship to the customer, payments into and from the special 
account are included in gross revenue/expenditure  for purposes calculating profit for corporate 
income tax.  
Exemption from import duties: Applies to imports by eligible shipbuilders of inpu ts (construction equipment, materials, parts, and 
sub-assemblies) not produced in Ukraine or if produced  do not comply with international standards as 
to certification or terms of individual contracts.  Th e Cabinet of Ministers of Ukraine approves the list 
of inputs to be exempted. 
Decree of the Cabinet of Ministers of Ukraine as of 8 November 2000 No.1678 (with changes and 
amendments) 
Exemption from VAT on imported inputs: 
Same as for import duties. WT/ACC/UKR/116 
Page 16  
 
 This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV excluding enterprises th at had signed contracts before entering into 
force by the Law No. 1344-IV and had received adva nced payments by these contracts on more than 
20 per cent from the contract sum. 
Zero rates of VAT on domestic sales: 
Sales by eligible shipbuilders on the domestic  market are charged VAT at a zero rate. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV excluding enterprises th at had signed contracts before entering into 
force by the Law No. 1344-IV and had received adva nced payments by these contracts on more than 
20 per cent from the contract sum. 
Exemption from VAT on certain domestic inputs: 
Services rendered by Ukrainian d esign and development enterprises to eligible shipbuilders are 
exempted from VAT. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV excluding enterprises th at had signed contracts before entering into 
force by the Law No. 1344-IV and had received adva nced payments by these contracts on more than 
20 per cent from the contract sum. 
Exemption from land tax: Applies to eligible enterprises. This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV. 
Beneficiaries: 
Cabinet of Ministers of Ukraine approves the list of  eligible ship building enterprises.  The current 
approved list of enterprises appears in Cabinet of Ministers of Ukraine Resolution of 16 June 2000, 
No. 978 (including changes and amendments introdu ced by the Cabinet of Ministers of Ukraine 
Resolutions as of 21 August 2001, No. 1106 and as of 27 May 2002, No. 696)     
Amount: 
Revenue foregone in most recent (three) years with respect to: 
 2001, million UAH 2002, mill ion UAH 2003, million UAH 
Deferral of Corporate In come Tax 30.7 18.7 10.5 
Exemption from import duties 6.6 6.7 5.8 
Exemption from VAT on imports 14.5 20.9 23.3 
Zero rates of VAT on domestic sales 2.3 7.1 0.5 
Exemption from land tax 25.9 25.7 9.7 
 
Duration: The Law of Ukraine "On Measures of State Suppor t for the Ship-Building Industry in Ukraine" 
entered into force on 1 January 2001 will expire on 1 January 2005.   WT/ACC/UKR/116 
 Page 17 
 
 
 Trade effects: 
It is not possible to estimate what, if any, tr ade effects may result from the use of subsidies 
- Automotive Sector 
Policy objective and/or purpose: 
Promote investment and development in the prod uction of cars, trucks, buses and their parts. 
Background and authority: 
The preferred tax treatment for production of car s, trucks, buses and manufacture of parts was 
introduced by the Law of Ukraine "On Stimulati on of Production of Motor Cars in Ukraine" 
No. 535/97-VR of 19 September 1997 (with changes and amendments).  
Form: 
Exemptions from corporate income tax. 
Exemption on that part of income, that is re-invested  and used for loan re-payment within investment 
project.  
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No.1344-IV excluding enterprises that had approved investment programs and 
investments done. 
Exemption from import duties: Exemption covers approved equipment, materials, pa rts, assemblies. Cabinet of Ministers determines 
the lists of imported products covered by the exem ption, and importation procedures to be followed. 
Volumes approved by the Ministry of Industrial Policy of Ukraine. 
Products that can currently be imported duty free by eligible enterprises are listed in the Resolution of 
the Cabinet of Ministers of Ukraine as of 1 June 2002 No. 737. 
Exemption from VAT on imports of equipment and inputs: As for import duties - this measure was withdraw n by the Law of Ukraine "On the State Budget of 
Ukraine for 2004" as of 27 November 2003, No. 1 344-IV excluding enterprises that had approved 
investment programs and investments done. 
Zero rates of VAT on domestic sales: 
Sales of manufactured cars, trucks, buses by qualifie d enterprises on the domestic market are charged 
VAT at a zero rate. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV excluding enterpri ses that had approved investment programs and 
investments done. WT/ACC/UKR/116 
Page 18  
 
 Exemption from excise tax: 
Until 1 January 2007 sales of passenger and dual-pur pose automobiles and motorcycles manufactured 
in Ukraine are exempted from excise taxes when sold on the domestic market.  The exemption applies 
to companies that produce a minimum of 1,000 au tomobiles or 1,000 motorcycles per year.    
Exemption from land tax: 
The land area exempt from land tax is proportional to the investment made.  One hectare of land is 
exempted for each US$ 400,000 of investment at the rate of exchange, as determined by the National 
Bank of Ukraine, on the day of the investment. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV  
Beneficiaries: 
Enterprises investing in the assembly of cars, truc ks and buses and in the manufacture of parts for 
automotive sector.  To qualify enterprises must meet  minimum levels of investment (in monetary 
form): 
− Cars - US$ 150 million; 
− Trucks and Buses - US$ 30 million; and 
− Parts - US$ 10 million. 
Amount: 
Revenue foregone in most recent (three) years 
 2001, million UAH 2002, mill ion UAH 2003, million UAH 
Exemption from Corporate Income Tax No data available No data available 80.4 
Exemption from import duties 8.2 20.2 88.9 
Exemption from VAT on imports  No data available 74.0 336.1 
Zero rates of VAT on domestic sales 64.8 52.7 106.7 
Exemption from land tax 2.0 3.2 3.0 
Exemption from Excise taxes on domestic sales 20.2 33.8 123.8 
 
Duration: Until 1 January 2008. Trade effects: It is not possible to estimate what, if any, trad e effects may result from the use of these programs. 
- Aircraft 
Policy objective and/or purpose: 
The overall objective for providing subsidies to the ai rcraft construction industry is to promote an 
efficient use of existing production and Research  and Development facilities and to encourage 
investment to provide for modernization a nd greater competitiveness of the industry.   WT/ACC/UKR/116 
 Page 19 
 
 
 Background and authority: 
The preferred tax treatment in aircraft constructi on is provided for in the Law of Ukraine "On State 
Support of Aircraft Construction Industry in  Ukraine" No. 2660-III of 12 July 2001.   
Form: Deferral of Income Tax 
At option of an eligible aircraft producer, advan ce and interim payments received from a customer 
may be placed in a special account and exempt fro m withholding tax. Funds in such accounts may 
only be used to meet costs associated with fulf illing the contract under which the advance/interim 
payment is made.  In the fiscal year in which th e producer delivers the aircraft to the customer, 
payments into and from the special account are in cluded in gross revenue/expenditure for purposes 
calculating profit for corporate income tax."  
Exemption from import duties: Applies to imports by eligible aircraft producers of  inputs (equipment, materials, and sub-assemblies) 
not produced in Ukraine or if produced do not comply with international requirements as to classification or terms of individual contracts.  The Cabinet of Ministers approves annually the list 
and volumes of inputs to be exempted. 
Products that can currently be imported duty free by eligible enterprises are listed in the Resolution of 
the Cabinet of Ministers of Ukraine as of 12 April 2002 No. 519 (with amendments) 
Exemption from VAT on imports: Exemption subject to the same conditions and approval process as for import duties. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV excluding enterprises th at had signed contracts before entering into 
force by the Law No. 1344-IV and had received adva nced payments by these contracts on more than 
20 per cent from the contract sum 
Zero rates of VAT on domestic sales: Sales of aviation products manufactured at the expe nse of State Budget by qualified enterprises on the 
domestic market are charged VAT at a zero rate. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV excluding enterprises th at had signed contracts before entering into 
force by the Law No. 1344-IV and had received adva nced payments by these contracts on more than 
20 per cent from the contract sum 
Exemption from land tax: 
Applies to eligible enterprises. 
This measure was withdrawn by the Law of Ukrain e "On the State Budget of Ukraine for 2004" as of 
27 November 2003, No. 1344-IV. 
Beneficiaries: WT/ACC/UKR/116 
Page 20  
 
 The list of eligible enterprises presented in the Article 2 of the Law of Ukraine "On State Support of 
Aircraft Construction Industry in Uk raine" No. 2660-III of 12 July 2001. 
Amount: Revenue foregone in recent years with respect to: 
 2002, million UAH 2003, million UAH 
Deferral of Corporate Income Tax 7.4 8.1 
Exemption from import duties 7.1 7.6 
Exemption from VAT on imports 22.7 17.7 
Zero rates of VAT on domestic sales No  data available No data available 
Exemption from land tax  33.5 16.7 
 
Duration: 
The Law of Ukraine the Law of Ukraine "On Stat e Support of Aircraft Construction Industry in 
Ukraine" No. 2660-III of 12 July 2001  entered into force on 1 January 2002 and will expire on 
1 January 2007.  
Trade effects: It is not possible to estimate what, if any, trad e effects may result from the use of these programs. 
- Space Industry 
Policy objective and/or purpose: 
Assistance is intended to preserve and effectivel y employ the existing scientific, research, and 
production potential of Ukraine's space industry as a priority component of the high technology sector 
and to encourage investment as to ensure  the future viability of the industry. 
Background and authority: 
The preferred tax treatment for eligible enterprises in  the space industry is provided for in the Law of 
Ukraine "On State Support of Space Activity" No. 1559-III of 16 March 2000 
Form: Exemption from import duties. Exemption applies to imports by qualified enterp rises of products used for production of space 
machinery (including units, systems and their compone nts for space complexes, space carrier rockets, 
space vehicles and land segments of space systems).  The Cabinet of Ministers approves the list of inputs and volumes to be exempted.  
The list and volumes to be exempted, as well as the list of qualified enterprises approved by the 
Resolution of the Cabinet of Ministers of Ukraine as of 22 February 1999 No. 276 (with changes and amendments made by the Resolutions of 7 February  2001 No131, of 24 October 2001 No. 1394, 
13 December 2001 No. 1648)  WT/ACC/UKR/116 
 Page 21 
 
 
 Exemption of imports from VAT: 
As for import duties. Exemption from VAT on sales in the domestic market: Sales of space complexes, space carrier rockets, space vehicles, land segments of space systems and 
their units, systems and components, by eligible enterprises on the domestic market are charged VAT 
at a zero rate. 
Exemption from land tax: List of enterprises exempted from land tax approved a nnually by the Cabinet of Ministries of Ukraine. 
The latest list (for 2003) approved by the Resolution of the Cabinet of Ministries of Ukraine as of 
2 June 2003 No. 809. 
Beneficiaries: 
Cabinet of Ministers of Ukraine approves the list of eligible enterprises in the space sector.  The 
current approved list of enterprises appears in the Reso lution of the Cabinet of Ministers of Ukraine as 
of 22 February 1999 No. 276 (with changes a nd amendments made by the Resolutions of 
7 February 2001 No131, of 24 October 2001 No. 1394, 13 December 2001 No. 1648) 
Amount: 
Revenue foregone in most recent (three) years with respect to:  
 2001, million UAH 2002, mill ion UAH 2003, million UAH 
Exemption from import duties   2.77 
Exemption from VAT on imports  3.94 1.82 11.87 
Exemption from land tax 23.68 23.89 23.71 
Zero rates of VAT on domestic sales 7.72 6.25 14.76 
 
Duration: 
Programs apply until 1 January 2009. Trade effects: It is not possible to estimate what, if any, tr ade effects may result from the use of these programs 
- Coal Mining  
Policy objective and/or purpose: 
To assist in restructuring and modernization in the coal mining sector, raising industrial safety, labor 
safety improvement. 
Background and authority: Beginning on 1 January 2002 State Support to Coal  Mining Enterprises was provided in accordance 
with the Resolution of the Cabinet of Minist ers of Ukraine No. 1733 of 27 December 2001 "On WT/ACC/UKR/116 
Page 22  
 
 approval of procedure for identification and pr ovision of the State support to the Coal Mining 
Enterprises". 
Since September 2003 State Support to Coal Mining Enterprises is provided in accordance with new 
"Procedure of provision and identification of the state support to coal producers for partial refund of expenses from the production price, as well as construc tion and technical re-equipment of black coal, 
brown coal and peat producers" that was approve d by the Resolution the Cabinet of Ministers of 
Ukraine of 21 August 2003 No. 1311.  The Resolu tion of the Cabinet of Ministers of Ukraine 
No. 1733 of 27 December 2001 accordingly was cancelled. 
State support to construction and technical re-equipm ent of coal enterprises is provided according to 
the Resolution of the Cabinet of Ministers of Ukraine No. 1764 of 27 December 2001 "On approval of 
the Procedure for State Financing of Capital Construction". 
The scope of the program is determined each year  under the Law on State Budget of Ukraine for the 
corresponding year. 
Form: Grants to coal mining enterprises to partially c over production cost.  Grants are made in advance 
annually in accordance with estimated production costs and anticipated sales of eligible enterprises.  
Conditions for obtaining support: 
− Coal production of this enterprise should be demanded in Ukraine; 
− This enterprise commits itself to increase the efficiency of production, particularly cut 
down cost price; and 
− Volume of the commercial coal output being expressed in forecast price of sales do not 
cover production expenses. 
Main economical showings for determ ination of the state support are: 
− Volume of the commercial coal output; 
− Production expenses; and 
− State support to construction and technical re-e quipment of coal enterprises is provided in 
form of grants (to state or public ownership enterprises) or credits (to enterprises of other ownership). 
Beneficiaries: The program applies to black coal, brown coal and peat producers irrespectively to enterprise 
ownership. 
The program does not apply to enterprises being prepared for liquidation. 
List of eligible enterprises is drawn up by the Mini stry of Fuel and Energy on the basis of economical 
indicators of enterprises activity an d their plans for respective year. 
Amount: 
 2002, million UAH 2003, million UAH 
partial refund of expenses from the production price 850 830 
support to construction and te chnical re-equipment 698 1,100.895  WT/ACC/UKR/116 
 Page 23 
 
 
 Duration: 
Since September 2003 – Indefinite. Trade effects: It is not possible to estimate what, if any, trad e effects may result from the use of this program. 
- Book-Publishing 
Policy objective and/or purpose: 
Overcoming of the crisis in this sector and provid ing for development of Uk rainian book- publishing. 
Background and authority: Support is provided by the Law of Ukraine "On St ate Support of Book-publishing in Ukraine" of 
6 March 2003 No. 601-IV (with changes and amen dments made by the Law of Ukraine of 
20 November 2003 No.1300-IV) and by the Law of Ukraine "On the State Budget of Ukraine for 
2004" of 27 November 2003 No.1344-IV.  
In the year 2003 support was not provided.  In 2004 the Law of Ukraine of 6 March 2003 No. 601-IV 
was withdrawn by the Law of Ukraine "On the State Budget of Ukraine for 2004" of 27 November 2003 No. 1344-IV with exemption for production of copy-books, textbooks and school-
books. 
Form: Exemption from import duties. Exemption applies to imports of products used fo r book-publishing (paper, cardboard, cellulose, other 
polygraphic materials, equipment, computer-based equipment including units) that are not produced in Ukraine.  The list of inputs to be exempted  presented in the Law of Ukraine "On the Common 
Custom Tariff" No.2097-XII of 5 February  1992 (with changes and amendments).  
Exemption from VAT on imports: The same as for import duties. This privilege was withdrawn by the Law of Ukra ine "On the State Budget of Ukraine for 2004" of 
27 November 2003 No. 1344-IV with exemption for production of copy-books, textbooks and school-
books. 
Exemption from VAT on domestic sales: Products used for book-publishing (listed above ) and books-publishing production, produced in 
Ukraine  
This privilege was withdrawn by the Law of Ukra ine "On the State Budget of Ukraine for 2004" of 
27 November 2003 No.1344-IV with exemption fo r production of copy-books, textbooks and school-
books. WT/ACC/UKR/116 
Page 24  
 
 Exemption from Corporate Income Tax: 
Exempted income of publishing-houses and organisa tions, polygraphic enterprises and distributors of 
books-publishing production, produced in Ukraine. 
This privilege was withdrawn by the Law of Ukra ine "On the State Budget of Ukraine for 2004" of 
27 November 2003 No. 1344-IV. 
Beneficiaries: 
Publishing-houses and organisations, polygraphic en terprises and distributors of books-publishing 
production in respect of production of copy-books, textbooks and school-books. 
Amount: According to the Law of Ukraine "On the State Budget of Ukraine for 2004" of 27 November 2003 
No. 1344-IV (Article 32) for 2004 it is foreseen UAH 45,303 million. 
Duration: From 1 January 2004 till 1 January 2009. Trade effects: It is not possible to estimate what, if any, trad e effects may result from the use of this program. 
 
__________ 
 