25% сompensation of the purchased machinery and equipment cost

Implemented in accordance with the program Financial support of agricultural producers, direction Partial compensation of the cost of agricultural machinery and equipment of domestic production, approved by the Resolution of the Cabinet of Ministers of Ukraine №130 from 01.03.17.

Who is eligible for compensation

Legal entities and entrepreneurs whose main activity is the supply of agricultural goods, provided that the share of such agricultural goods in the total value of all goods supplied by such legal entities and individuals is not less than 75 % during the previous 12 reporting tax periods collectively (for newcomers - according to the results of each reporting period).

Compensation amount

25% of the cost (excluding VAT) of the purchased machinery and equipment, which at the time of full payment for their purchase through an authorized bank were included in the List of Domestic Machinery and Equipment.

How to receive

1. Pay for the machinery/ equipment from your own or loan account (including prepayment for such machinery and equipment).

2. Submit the application, as well as the originals and copies of the documents:

• copy of the payment instruction or other payment document confirming the payment;
• machinery and equipment delivery and acceptance certificate;
• certificate of vehicle and/or machine registration (if the equipment is subject to mandatory state registration).

The above-mentioned documents must contain identifying information about the purchased machinery/equipment, if the information is insufficient, the following documents should be additionally attached:

• machinery and equipment purchase and sale agreement;
• invoice for machinery and equipment payment;
• specification.

3. The Bank submits the register of agricultural producers who have purchased machinery and equipment to the Ministry by the 10th of each month.

4. The Ministry transfers budget funds to the Bank after the 25th of each month. The Bank credits them to the current account of the customer within 3 bank days.

The following agricultural producers are eligible for partial compensation

• those that are not subject to bankruptcy proceedings and/or have not been declared bankrupt, and/or are not in the process of liquidation;
• those that do not have, as of the first day of the month in which the compensation will be decided, overdue payments for more than six months, the collection of which is given to the bodies of the State Tax Service of Ukraine;
• those that, as of the date of submitting the application, are not located in or conducting business in territories with active hostilities, territories with active hostilities with functioning state electronic information resources, or the territories of Ukraine temporarily occupied by the Russian Federation, which are included in the list of territories with (recently) active hostilities or those that are temporarily occupied by the Russian Federation, as approved by the Ministry for Development;
• that are not included in the list of persons associated with the terrorist activities or subject to international sanctions;
• that do not conduct business in the Russian Federation, the Republic of Belarus, and/or a state (jurisdiction) included in the list of states (jurisdictions) that do not implement or improperly implement the recommendations of the international and intergovernmental organizations involved in combating the legalization (laundering) of money obtained through criminal means, or the financing of terrorism or the proliferation of weapons of mass destruction;
• that are not located or registered in the Russian Federation, the Republic of Belarus, and/or a state (jurisdiction) included in the list of states (jurisdictions) that do not implement or improperly implement the recommendations of the international and intergovernmental organizations involved in combating the legalization (laundering) of money obtained through criminal means or financing terrorism or the proliferation of weapons of mass destruction;
• whose legal entities’ ultimate beneficial owners are not residents of the Russian Federation, the Republic of Belarus, and/or a state (jurisdiction) included in the list of states (jurisdictions) that do not implement or improperly implement the recommendations of the international and intergovernmental organizations involved in combating the legalization (laundering) of money obtained through criminal means, or financing terrorism or the proliferation of weapons of mass destruction;
• whose legal entities’ participants (founders, shareholders) are not registered in the Russian Federation, the Republic of Belarus, and/or a state (jurisdiction) included in the list of states (jurisdictions) that do not implement or improperly implement the recommendations of the international and intergovernmental organizations involved in combating the legalization (laundering) of money obtained through criminal means or financing terrorism or the proliferation of weapons of mass destruction;
• whose legal entities’ participants (founders, shareholders) , ultimate beneficial owners are not residents of the Russian Federation, the Republic of Belarus, and/or a state (jurisdiction) included in the list of states (jurisdictions) that do not implement or improperly implement the recommendations of the international and intergovernmental organizations involved in combating the legalization (laundering) of money obtained through criminal means or financing terrorism or the proliferation of weapons of mass destruction;
• whose legal entities’ participants (founders, shareholders) and/or ultimate beneficial owners are not included in the list of persons associated with the terrorist activities or subject to international sanctions;
• whose legal entities’ participants (founders, shareholders) and/or ultimate beneficial owners are not classified as persons subject to special economic and other restrictive measures (sanctions) in accordance with the Law of Ukraine “On Sanctions”;
• that are registered in the State Agrarian Register.

Machinery and equipment purchased through leasing do not participate in the compensation program.

During the term of the program, one agricultural producer (including the related persons) may receive an amount not exceeding 10 thousand minimum wages (hereinafter referred to as “MW”), which is established as of January 1 of the respective year, that is UAH 80,000,000.00. As of 01.01.2025, the MW is UAH 8,000.00. Control over compliance with this restriction is exercised by the state authorities.

The cost of machinery and equipment purchased after December 1 of the current budget period is eligible for partial compensation from budget allocations provided for in the state budget for the next budget period for the relevant purposes, i.e., all the applications and supporting documents attached thereto for the partial compensation of the cost of the machinery and equipment purchased:

• before December 1 of the current budget period - must be submitted by December 5 of the current year;
• after December 1 of the current budget period - must be submitted by April 1 of the next budget period.

Machinery and equipment purchased by agricultural manufacturers with partial cost compensation are not subject to alienation for three years and are used for their intended purpose, except when the machinery and equipment are accepted by the Bank as pledge and alienated in case of debtor’s default under the loan agreement.