Law of Ukraine
“On Measures on State Support of Shipbuilding Industry of Ukraine”
Date of Entry into Force
January 1, 2000
The Law stipulates introduction of the row of measures of the state support of shipbuilding enterprises with the aim to attract investments, including foreign investments, decrease of costs on building of ships, and increasing working capital of shipbuilding enterprises.
The list of shipbuilding enterprises, to which the state support shall be granted, is approved by the Cabinet of Ministers of Ukraine (this list is approved by the Resolution N 978 of the Cabinet of Ministers of Ukraine dd. June 16, 2000).
The state support of the shipbuilding industry consists in granting a number of tax benefits to shipbuilding enterprises. These benefits are as follows:
- preferential taxation with tax on profit from advance payments, received by shipbuilding enterprises;
- exemption from the import duty with respect to materials, equipment and components, used for building of ships by shipbuilding enterprises;
- exemption of shipbuilding enterprises from the land tax;
- exemption from the VAT while importing materials, equipment and components, used for building of ships by shipbuilding enterprises;
- exemption of engineering design works, performed by home designers under shipbuilding contracts with the aforementioned enterprises of shipbuilding industry, from the VAT;
- zero rate taxation of operations on sales of products, produced by the mentioned enterprises of the shipbuilding industry at the account of the State Budget of Ukraine.
All these measures of the state support shall be carried out from January 1, 2000 to January 1, 2005.
In addition, in accordance with this Law the mentioned enterprise of the shipbuilding industry were given a 60-month delay in paying their debts to the State Budget of Ukraine and state target funds that were accumulated as of January 1, 2000.