Law of Ukraine

OnthePromotionofInvestmentActivityinthePrioritySectorsofEconomytoCreateNewJobs

This law defines the basis of public policy in the investment sphere for 2013-2032 to stimulate the attraction of investments in the priority sectors of economy.

The law is aimed at creating conditions to intensify the investment activity by means of public resources concentration in the priority sectors of economy development with a purpose of introducing modern and energy efficiency technologies, creating new jobs, developing regions.

Article 1.Legislation on promoting the investment activity in the priority sectorsof economy

  1. The legal basis to stimulate the investment activity is the Constitution of Ukraine, Laws of Ukraine “On Investement Activity”, “On the Regime of Foreign Investment” and other legal acts regulating relations in this sphere.

Article 2.Priority sectors of economy

  1. Priority sectors of economy are the sectors, aimed at meeting the needs of society in competitive high-tech and environmentally friendly products, high quality services, that are implementing the public policy on developing the industial and export potential, creating new jobs.
  2. The list of priority sectors of economy is determined by the Cabinet of Ministers of Ukraine.

Article 3. The public support of investment activity in the priority sectors of economy

  1. The public support of investment activity in the priority sectors of economy is carried out according to the order and under conditions, stipulated by this Law.
  2. The peculiarities of taxation of economic entities implementing the investment projects in the priority sectors of economy are determined by Tax Code of Ukraine.
  3. The peculiarities of Entry Tax payment by the economic entities implementing the investment projects in the priority sectors of economy are determined by the Customs Code of Ukraine.
  4. The amount of funds allocated for the public support are annualy determined by the Law “On the State Budget of Ukraine” as well as by corresponding local budgets, including Article 105 of the Budget Code of Ukraine.

Article 4. The criteria of public support for the investment projects in the priority sectors of economy

  1. The public support is provided for the economic entities implementing the investment projects in the priority sectors of economy, which are approved by the Cabinet of Ministers of Ukraine and presented by the specially designated authority under the Cabinet of Ministers of Ukraine on the issues of providing public support for the economic entities of investment activity that are implementing the investment projects in the priority sectors in economy (hereinafter referred to as the Special Designated Authority under the Cabinet of Ministers of Ukraine), Council of Ministers of the Autonomous Republic of Crimea, Regional, Kyiv and Sevastopol City State Administrations.
  2. The investment project in the priority sector of economy is considered to be the investment project which is to be implemented at the newly formed or acting enterprise, where the reconstruction or modernization will be carried out (on compulsory condition that a separate structural subdivision will be created where the investment project is to be implemented) and which at the same time corresponds to the following criteria:

1)the estimated cost exceeds the sum:

3 million EU – for large business entities;

1 million EU – for medium business entities;

500 thousand EU – for small business entities;

2)the number of newly created jobs for employees directly involved in the production exceeds:

150 – for large business entities;

50 – for medium business entities;

25 – for small business entities;

3)the average salary of workers should be no less than 2.5 times minimum wage, prescribed by the law as of January 1st, of the financial (fiscal) year.

  1. Investment projects in the priority sectors of economy that are to be provided with the public support are subject to the state registration by the Special Designated Authority under the Cabinet of Ministers of Ukraine in accordance with the procedure established by the Cabinet of Ministers of Ukraine.

The state regiser of such projects is posted by the Special Designated Authority under the Cabinet of Ministers of Ukraineon its official website.

If the indicators defined in the second part of this Article have not been achieved within two years from the date of state registration of investment project, the validity period of investment project registration is terminated.

  1. The requirements for investment projects in the priority sectors of economy, the order of their selection, approval and registration are established by the Cabinet of Ministers of Ukraine.
  2. The control over implementation of this law is performed by the Special Designated Authority under the Cabinet of Ministers of Ukraine and the representation of this body in the Autonomous Republic of Crimea, regions, cities of Kyiv and Sevastopol under the Council of Ministers of the Autonomous Republic of Crimea, Regional, Kyiv and Sevastopol City State Administrations.

Article 5.The powers of the Council of Ministers of Autonomous Republic of Crimea, Regional, Kyiv and Sevastopol City State Administrations

  1. The powers of the Council of Regions of Autonomous Republic of Crimea, Regional, Kyiv and Sevastopol City State Administrations in order to stimulate the investment activity in the priority sectors of economy are:

1)to develop and ensure the implementation of investment activity development programmes on the territory of the region;

2)to select the investment projects to be implemented on the territory of the region, to attract investments, to create the most favourable conditions for investors;

3)to consider the investment projects in the priority sectors of economy submitted by theSpecial Designated Authority under the Cabinet of Ministers of Ukraine, under the Council of Ministers of Autonomous Republic of Crimea, Regional, Kyiv and Sevastopol City State Administrations and to introduce proposals to provide the investment agents implementing investment projects in the priority sectors of economy with the public support to the Cabinet of Ministers of Ukraine

4)to promote receiving the permissive documents for the beginning of investment project implementation in accordance with the established order, to solve the present issues of its implementation.

Article 6.Final Provisions

1. This Law comes into force on January 1st, 2013.

2. Cabinet of Ministers of Ukraine within 4 months from the day of this Law enactment shall:

develop and approve by-laws and regulations, required for the implementation of this Law;

bring their regulations in conformity with this Law;

ensure the review and bringing in conformity the regulations of corresponding central bodies of executive authorities with this Law by them.

President of Ukraine / V. Yanukovych
Kyiv
September 6th, 2012
№ 5205-VI