On August 4, 2025, the Federation of Employers of Ukraine hosted a meeting of executives from 150 Ukrainian companies and business associations to discuss draft legislation on investment compensation through taxes.
The speaker at the meeting was Ukrainian MP Dmytro Kyselevskyi.
Ukrainian Parliament’s member Dmytro Kyselevskyi is the author of two draft laws, No. 13414 and No. 13415.
The Ukrainian economy is faced a chronic investment shortage. The volume of investment is incomparable to the size of the national economy.
Ukraine has a critically low share of processing industry in GDP compared to neighboring countries. According to the World Bank, in 2011 this indicator in Ukraine was 12%, and in 2023, against the backdrop of Russia’s large-scale invasion, it fell to an unprecedented low of 8.2%. In Poland, this indicator is 16.8%, in Turkey – 19.5%, and in Slovakia – 20.7%.
Even before Russia’s large-scale invasion, Ukraine needed $200 billion to catch up with Poland in terms of foreign direct investment per capita (in 2021 prices) and to almost triple its GDP per capita in terms of purchasing power parity (PPP).
Key elements of the legislative initiative are the investment projects in the processing industry can be compensated through the company’s own taxes. Here such expenditures can be included:
■ Costs for the construction of engineering networks, engineering structures, and related infrastructure facilities;
■ Costs of buildings and facilities purchase or costs of their construction, modernization, technical and/or technological re-equipment;
■ Costs of production equipment purchase;
■ Costs of purchasing land.
Partial costs compensation for processing industry investment projects will be provided through the following taxes:
■ Income tax;
■ Import VAT on equipment;
■ Import duty on equipment;
■ Property tax;
■ Land tax;
The share of investments that can be compensated through taxes will depend on the volume of the investment project:
■ From €100,000 to €1 million – 70%;
■ From €1 million to €20 million – 50%;
■ From €20 million to €50 million – 30% of investments.
The key difference between this initiative and others is that it will apply to investments in existing enterprises, not just new ones.
Ukrainian Parliament’s member Dmytro Kyselevskyi announced that, in an optimistic scenario, these legislative changes will come into effect in the second half of 2026.
The Union of Dairy Enterprises of Ukraine calls on Ukrainian Parliament to support draft of laws No. 13414 and No. 13415 as soon as possible.
