Investments shall be understood to mean any funds, securities, other property, including property and other rights with monetary value, vested in the objects of business and (or) other activity for the purpose of profit-making and/or gaining other beneficial effect.
The laws of Ukraine, governing the import of foreign investments:
- Law of Ukraine No. 93/96 VR “On the Regime of Foreign Investments” dated 19.03.1996
- Customs Code of Ukraine dated 13.03.2012
- Law of Ukraine No. 1457-III “On Elimination of Discrimination in Taxation of Subjects of Business Activity, Formed with the Use of Property and Funds of Domestic Origin” dated 17.12.2000; Decree of the Cabinet of Ministers of Ukraine No. 139 “On Approval of Procedure for State Registration (Re-registration) of Foreign Investments and Its Cancellation” dated 06.03.2013.
Procedure for legal support of foreign investments
In order to make it possible that the goods imported to Ukraine as a contribution by foreign investor would cross the border, the target enterprise, in which favour the goods are imported, shall be accredited (registered) with the customs authorities and execute a cargo delivery control document, which is an entry summary declaration.
In order to perform the customs processing of investments, the following documents shall be submitted to the customs of destination:
- duly registered Articles of Association of the enterprise with indication of the property imported (the share shall not make less than 10 percent);
- document, proving the investment value (e.g., invoice), indicating the investment donor and recipient, complete description of goods, delivery conditions etc.;
- letter of notice, issued by the investor, proving that the investor invests the property of the indicated value and containing reference to the invoice;
- information notification issued according to the Decree of the Cabinet of Ministers of Ukraine No. 139 “On Approval of Procedure for State Registration (Re-registration) of Foreign Investments and Its Cancellation” dated 06.03.2013.
Should the property imported to Ukraine as a contribution by foreign investor to authorized capital be alienated within 3 years, including alienation due to termination of activity of the enterprise (except for the export of foreign investment abroad), the enterprise shall pay an import duty, which shall be calculated based on the customs value of the property as of the date of alienation plus VAT.