Special mode “Defense City”: answers to key questions regarding benefits for defense-industrial complex enterprises in one Newsletter

Press service of the State Tax Service of Ukraine, published 11 August 2026 at 16:50 Chapter: News

If your company operates in the defense-industrial complex or plans to acquire the Defense City resident status, please pay attention to the new Newsletter № 3/2026.

It is devoted to practical aspects of applying tax benefits introduced by the Law of Ukraine № 4577-IХ.

The main aspects considered in the Newsletter:

Income tax: conditions for exemption in case of reinvestment of profits in development of the defense industry (technical re-equipment, new models of weapons and military equipment) and peculiarities of submitting application/declaration.

Environmental and property taxes: exemption peculiarities from payment for the Defense City residents.

Transfer pricing and controlled foreign companies: how the arm’s length principle is applied to defense industry enterprises and taxation rules of the controlled foreign companies.

Audits and administration: interaction procedure between the State Tax Service and Ministry of Defense, audits during the special regime and procedure for confirming the tax debt absence.

Explanation provides answers to the most common questions of the taxpayers with illustrative examples of the application of preferential taxation and reporting regime.

For more information about the Newsletter’s text, please visit: https://tax.gov.ua/data/material/000/899/1039303/InfoList_3_2026.pdf