An investment project applying for state support in accordance with the Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine” (hereinafter referred to as the Law) must meet the following requirements:
1) spheres of implementation: processing industry, production of biogas and biomethane, extraction for the purpose of further processing and/or enrichment of minerals, waste management, transport, warehousing, postal and courier activities, logistics, education, scientific and scientific and technical activity, health care, art, culture, sports, tourism, resort and recreation sphere and electronic communications;
2) form of reproduction: construction, modernization, technical and/or technological re-equipment of investment objects, acquisition of the necessary equipment (equipment) and accessories for it, and may also involve the construction of engineering and transport infrastructure objects;
3) creation of new jobs: at least 10/30/50 new jobs with an average salary that is, respectively, 50%/30%/15% higher than the average salary in the region for the relevant type of activity;
4) the size of significant investments: at least 12 million euros excluding value added tax;
5) project implementation period: not more than 5 years.
The total volume of significant investments in investment objects (non-current assets) is calculated without taking into account value added tax and includes all capital costs that have been and/or will be invested in the construction, modernization, technical and/or technological re-equipment of investment objects (including capital costs for design), the purchase of the necessary equipment (equipment) and accessories for it and the construction of the necessary objects of engineering and transport infrastructure in the process of implementing the investment project. Costs unrelated to the implementation of the investment project cannot be included in the total volume of significant investments.
The applicant can choose any forms of state support provided by law, but the total amount of state support for all selected types should not exceed 30% of the planned amount of significant investments.
According to Part 5 of Article 1 of the Law, an investor with significant investments is a legal entity registered in Ukraine, which was specially formed for the implementation of an investment project with significant investments and whose economic activity is directed exclusively to the implementation of an investment project with significant investments and the execution of a special investment contract. Other economic activities, except those related to project implementation, cannot be carried out by an investor with significant investments.
The applicant must take steps to create a legal entity — an investor with significant investments. If the applicant is a legal entity registered in Ukraine, specially formed for the implementation of an investment project with significant investments, and meets all the requirements and restrictions established by law, it can become a party to a special investment agreement as an investor with significant investments.
The applicant must prepare an application and submit it to the Ministry of Economy of Ukraine. If the application meets all the requirements of the legislation, the Ministry of Economy of Ukraine issues a conclusion on the feasibility of implementing the investment project and signing a special investment agreement.
After signing a special investment agreement, the project receives the status of an investment project with significant investments and can receive state support.
No earlier than 18 months before the date of submission of the application to the Ministry of Economy of Ukraine, the applicant may make significant investments in investment objects in an amount not exceeding 30% of the total amount of significant investments required for the implementation of the investment project with significant investments.
n investor with significant investments can apply for state support only if he is another subject of an industrial park that does not have the right to receive state incentives in accordance with clause 9 of part 1 of article 1 of the Law of Ukraine “On Industrial Parks”.
If, during the implementation of a special investment agreement, the actual volume of significant investments is greater than that stipulated in such an agreement, the total amount of state support remains unchanged.
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