Ukraine Unveils New Tax Incentives for Manufacturing Investors

Our NUCC member CMS has published an insightful overview of Ukraine’s newly adopted tax incentive programme aimed at attracting investment into the processing and manufacturing sectors.

The legislation offers substantial tax and customs relief designed to support industrial development and post-war economic recovery, with incentives available to both new and existing manufacturing businesses (with certain sector exclusions).

Key highlights of the new incentives

• Partial compensation of capital investments
  Businesses in the processing industry may recover 30–70% of eligible investments through tax relief.
• Tax and customs exemptions
  • Exemption from import duties and VAT on new equipment and components.
  • Up to 10 years exemption from corporate income tax.
  • Local land and property tax exemptions for eligible investment projects (subject to municipal decisions).
• Eligible activities
  • Construction of industrial infrastructure.
  • Upgrading or acquisition of production facilities.
  • Purchase of new machinery and equipment.
  • Acquisition of industrial land.
• Eligible investors
  • Both new and existing legal entities operating in the processing sector.
  • Certain industries — including alcohol and tobacco — are excluded from the programme.

Levels of investment support

• €100,000 – €1 million: up to 70% compensation
• €1 – €20 million: up to 50% compensation
• €20 – €50 million: up to 30% compensation

Investments exceeding €50 million are not eligible, as the programme prioritises small and medium-scale industrial projects.

Why this matters

The incentives are widely supported by Ukrainian industry leaders and policymakers as a practical mechanism to stimulate industrial modernisation and attract foreign investment during the recovery phase. The government expects the programme to be tied directly to real economic activity, limiting immediate impact on the state budget.

Further regulations — including the establishment of an official investor registry — are expected before full implementation of the scheme.

Learn more

For in-depth legal guidance on the incentive framework and how foreign investors may benefit, see the full article by CMS experts Natalia Kushniruk and Viktoriia Stavchuk-Mulundkar:

👉 Ukraine unveils tax incentives for manufacturing investors
https://cms-lawnow.com/en/ealerts/2025/12/ukraine-unveils-tax-incentives-for-manufacturing-investors

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