Since 1992 in its effort to spur economic recovery the Ukrainian government has adopted a number of laws and decrees with the intention of attracting foreign investment.
Most recent is the law On the Regime of Foreign Investment effected on 25 April 1996. This law revokes previous legislation in respect of foreign investment.
The fundamental provisions of the new law are as follows:
- the new law in contrast to the previous regulations does not provide for any profit tax privileges for newly established companies with foreign investment. However, in accordance with the 1994 Corporate Profit Tax Law companies with qualifying foreign investment established before 1 January 1995 can continue enjoying a 5 year corporate profit tax holiday;
