Industrial machinery production
Partial compensation of the cost of agricultural machinery and equipment of domestic production
Support is provided to legal entities and natural persons – entrepreneurs whose main activity is supply of agricultural products produced by them on their own or leased fixed assets, provided that the specific weight of the value of such agricultural goods is at least 75% of the value of all goods supplied by such legal entities and natural persons during previous 12 consecutive reporting tax periods, and newly established agricultural producers who have been in business for less than 12 calendar months – based on the results of each separate reporting period.
Partial compensation is provided on a non-refundable basis in the amount of 25% of the cost (excluding VAT) for purchased machinery and equipment.
To receive partial compensation, agricultural producers submit to the authorized bank through which the payment for machinery and equipment was made, applications and supporting documents regarding their purchase.
Partial compensation is provided for machinery and equipment, the degree of localization of production of which exceeds 60%, except for tractors and other automotive energy-powered machinery for agricultural purpose, special vehicles for agricultural purposes, automotive and trailed combine harvesters, the degree of localization of production of which must exceed the indicator established in the Procedure for determining the degree of localization of production by domestic machine-building enterprises for agro-industrial complex of domestic machinery and equipment for agro-industrial complex, approved by the Resolution of the Cabinet of Ministers of Ukraine as of 27 May 2013 No. 369.
The list of machinery and equipment, the cost of which is partially compensated by budget funds, is formed and approved by the Ministry of Economy.
The list includes machinery and equipment produced by manufacturing plants that have been residents of Ukraine for at least 2 years and comply with the following requirements:
- the specific weight of labor costs, considering deductions for social measures as part of the cost of manufactured (realized – for economic entities that apply a simplified system of taxation, accounting and reporting) products, is at least 8%;
- the manufacturers have design and technological documentation and/or registered intellectual property rights for machinery and equipment reflected in the balance sheet;
- the manufacturers carry out production of assemblies, aggregates, parts and component products on the territory of Ukraine and/or use such assemblies, aggregates, parts and component products manufactured on the territory of Ukraine, in accordance with the list of technological operations necessary for production of machinery and equipment specified in the appendix to the Procedure for determining the degree of localization of production by domestic machine-building enterprises for agro-industrial complex of domestic machinery and equipment for agro-industrial complex, approved by the Resolution of the Cabinet of Ministers of Ukraine as of 27 May 2013 No. 369;
- perform warranty and post-warranty maintenance of machinery and equipment.
Applications for inclusion in the list in the current year are submitted to the Ministry of Economy by 31 October. Applications for inclusion in the list next year are submitted to the Ministry of Economy from 1 November of the current year.
Applications for annual confirmation of compliance of machinery and equipment included in the list in previous years with the current year’s criteria are submitted to the Ministry of Economy every year from 1 January to 31 March.