On April 11, 2023, Parliament adopted Draft Law #7632 "On Amendments to the Tax Code of Ukraine regarding Exemption from Payment of Tax on Immovable Property, Other than Land Plots, for Destroyed or Damaged Immovable Property" (Draft Law #7632), which regulates the issue of determining the list of territories where hostilities are (were) taking place or which are temporarily occupied, for tax purposes (list of territories).
In accordance with the revised provision, the Cabinet of Ministers of Ukraine determines the precise mechanism for approving the list of territories, thereby enabling the application of Order #309 of the Ministry of Reintegration of the Temporarily Occupied Territories of Ukraine "On Approving the List of Territories where Hostilities are (were) Taking Place or which are Temporarily Occupied by the Russian Federation", as of December 22, 2022, for tax purposes. Consequently, taxpayers will have the opportunity to avail themselves of the special tax provisions applicable on these territories.
The American Chamber of Commerce in Ukraine (AmCham Ukraine) has repeatedly appealed to the Government and Parliament regarding the need to approve the list of territories for the purposes of applying the updated tax legislation and provided proposals for resolving the legislative collision, which were supported by the Parliament and reflected in the current wording of the Draft Law #7632.
We would like to thank MP Danylo Hetmantsev, Head of the Parliamentary Committee on Financial Issues, Tax and Customs Policy, for supporting the AmCham's proposal and all AmCham Ukraine members who were actively involved in this advocacy process for their contribution.