Tax incentives for industrial park residents: what the law offers in 2026

A zero corporate profit tax rate for ten years, exemption from VAT and import duty on equipment, and possible local tax relief — it is the tax package that makes industrial parks attractive to manufacturers. Here is what Ukrainian law actually offers in 2026, who qualifies, and how the incentives can be lost.

Where the incentives come from

The basic rules are set by the Law of Ukraine "On Industrial Parks" No. 5018-VI. The tax package came later — on 21 June 2022 the Parliament adopted two laws:

• No. 2330-IX — amendments to the Tax Code creating favourable conditions for industrial parks;
• No. 2331-IX — amendments to the Customs Code on exemption from import duty.

The key condition for every incentive: the park must be included in the Register of industrial parks maintained by the Ministry of Economy, and the company must be registered as a participant of that park.

Incentive 1. Zero profit tax for 10 years

Industrial park participants may be exempt from corporate profit tax for ten consecutive years. This is the heaviest part of the package — and the most conditional.

Who qualifies

The exemption applies to participants operating within the park in:

• manufacturing (excluding excisable goods);
• waste collection, treatment and disposal, materials recovery;
• scientific and research and development activity.

Under what conditions

• the company keeps participant status for at least 10 years;
• business activity is conducted exclusively within the park;
• the amount of unpaid tax is directed to developing the participant's activity within the park — that is, reinvested;
• no dividends are accrued or paid during this period.

Breaching any condition means losing the incentive and having the tax assessed retroactively. Build your financial model around the dividend restriction from the start: the money stays in the company and works for expansion.

Incentive 2. VAT and import duty on equipment

Participants of registered parks are exempt from import duty and VAT on imports of new equipment and components under specified customs codes.

The conditions people most often trip over:

• the equipment must be new, not previously used;
• manufactured no earlier than three years before the date of import;
• used exclusively within the park, with no right to sell, lease out or move it outside the park during the established period.

The savings are material: for a production line worth several million euros, exemption from 20% VAT and duty is comparable to the budget of building the workshop itself. But it is a conditional benefit — breach the rules of use and the taxes become payable.

Incentive 3. Local taxes

Local self-government bodies have the right to grant relief on land payments and real estate tax to industrial park participants in their territory. This is not automatic: both the existence and the size of the relief depend on a decision of the local council.

Practical takeaway: before entering a park, check what the relevant community council has actually decided — it can change the project economics for years ahead.

Incentive 4. State support — connection cost compensation

Beyond tax relief there is a direct state support mechanism. The procedure for providing funds to develop industrial parks was approved by Resolution of the Cabinet of Ministers of Ukraine No. 644 of 4 June 2024.

It covers the costs of connecting to engineering and transport networks: electricity distribution, gas, heat and water supply, railway tracks, roads and communication lines. Applications are filed with the Ministry of Economy. Ceilings, priority rules and the list of supporting documents are set by the procedure, so check the current terms right before applying.

What it means in money: a simplified example

A production facility with an annual profit of UAH 40 million would pay UAH 7.2 million in profit tax at the standard 18% rate. Over ten years that is about UAH 72 million retained in the company and channelled into development. Add the VAT and duty exemption on an imported production line, and the combined effect often outweighs the price difference between a park plot and a bare field.

The calculation is illustrative: real figures depend on your cost structure, import volumes and local council decisions.

What the incentives do not cover

• Personal income tax and social contributions on salaries are paid on general terms.
• Excisable production does not qualify for the profit tax exemption.
• Trade, leasing and pure development activity are not qualifying activities.
• Used equipment is imported on general terms.

What to check before signing

1. Whether the park is in the Register of industrial parks and its status is active.
2. Whether your activity codes match the list of qualifying activities.
3. How the list of activities is worded in the contract with the management company.
4. What local tax decisions the community council has adopted.
5. Whether you can live with the dividend restriction for the whole incentive period.

Go through these five points with a tax adviser before signing, not after.

Terezyne Industrial Park

The park was created for 30 years at the 82nd kilometre of the Kyiv–Odesa highway in the Bila Tserkva district of Kyiv region. It covers 14.9882 hectares with 80 MW of available electrical capacity. Lease and sublease with development rights, purchase of a plot and build-to-suit construction are all available.

To model your project economics including the incentives, write to us. For the entry procedure step by step see "How to become a resident of an industrial park", and for short answers to common questions see the FAQ.