Law of Ukraine “On Amendments to the Tax Code of Ukraine to Promote and Strengthen the International Competitiveness of Video and Film Production Industry”
The Law of Ukraine “On Amendments to the Tax Code of Ukraine to Promote and Strengthen the International Competitiveness of Video and Film Production Industry” No. 821-IX was adopted by the Verkhovna Rada of Ukraine on July 21, 2020.
The law amends clause 186.3 of Art. 186 of the Tax Code of Ukraine, which exempts the export of services for the production and composition of video, film, animation (cartoon) films, television programs, commercials, photographic materials, computer graphics from VAT in Ukraine.
The law also returned to the Tax Code a provision that excludes the aid provided to reimburse a part of the qualified costs and expenses provided by the Law “On State Support of Cinematography in Ukraine” from the list of taxable incomes of non-residents in Ukraine.
Thus, the document improves the terms and conditions for the provision of services on the production of film and video materials by order of non-residents, harmonizes them with the practice of European countries, and thus increases the competitiveness of the production of such services in Ukraine.
Cheapening film and video production services for foreign companies will contribute to the development of this industry in Ukraine, development and growth of the national economy due to the growth of related industries: hotel and restaurant businesses, transport, financial, legal services, related services of other creative industries, as well as to the development and strengthening of the tourist attractiveness of Ukraine.
It will also have a positive impact on the promotion and improvement of Ukraine’s image in the world, in particular, to enhance its investment attractiveness in other sectors of the economy.