Small Settlements will provide tax relief

04.05.2011 15:31
Property News | Small Settlements will provide tax relief Ensure the development of human settlements with a population of 50 thousand people, providing them or their status of the territory of future development and relieving in 10 years from the profits tax investment projects for the production of export oriented goods worth over ? 10 million realized in such areas and offers Ministry of Economic Development and Trade of Ukraine. A corresponding draft law "On Territories of future development" published by the Ministry website for public comment.

According to the project, the funds are exempt from taxation within the document, sent exclusively to conduct research, acquisition of new technologies and equipment for implementing investment projects, creating new jobs, the return of credits received for investment projects, and paying interest on them.

The territory of future development is proposed to create in the lands of communal property, which are part of the territory of Ukraine within its administrative-territorial units (village, township, city or area in the city) with a population of 50 thousand people, which for a fixed period established a special legal regime of economic activities, in particular a special customs regime, and a special procedure for applying the legislation of Ukraine.

At the same time, this territory, the period for which it is created, as well as criteria and indicators for its establishment are determined by the Cabinet.

In addition to funds that are exempt from taxation on profits, value added tax, import duty shall be addressed in a separate account in the manner prescribed by the Government.

The Cabinet also establishes procedures for monitoring the effectiveness of the use of released funds from taxation and reporting.

In this case, the bill proposed to give investors, implement investment projects in the future development, the state guarantees to protect investments and ensure that such investors the right to export profits and investments outside of Ukraine in accordance with Ukrainian legislation.

Under the bill, in the long-term development can be undertaken all kinds of economic activity not prohibited by Ukrainian law.

A special legal regime of economic activity established in such territory, subject only to the investors in the exercise of economic activities during the implementation of investment projects on the territory.

As noted in the regulatory impact analysis accompanying the instrument, some of the country are resource development, because they are unattractive to investors, resulting in a significant economic decline and destruction of industrial and other infrastructure. This leads to a rise in unemployment, migration of the population (primarily young), population issues and social tensions in society.

Creating long-term development areas will boost the production of competitive products, as well as increasing the intensity of business development, investment, the accelerated socio-economic development of regions, as a result will increase jobs, increase wages, revenues to the budgets of all levels.
Content tags: Legislation
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