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 purchased (both with own and credit funds) machinery and equipment value (excluding VAT) included in the List of domestic machinery and equipment.

How to receive

1. Make payment for machinery/equipment from your own/loan account at the Bank (including advance payment for such machinery and equipment) starting from April 8, 2024 to November 30, 2024 (inclusive).

2. By December 5 (for equipment purchased before December 1), 2024, submit an application to the Bank, as well as originals and copies of the following 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.

Program Restrictions

Financial support is not provided to recipients:

• in respect of which a bankruptcy case has been initiated;

• who have been declared bankrupt;

• who are in the process of liquidation;

• who have an overdue debt for more than six months, the payment control of which is entrusted to the bodies of the State Tax Service of Ukraine;

• in respect of which special economic and other restrictive measures (sanctions) are applied, due to the relevant decisions of the National Security and Defense Council of Ukraine in accordance with the Law ‘On Sanctions’.

No compensation is provided for machinery and equipment purchased before April 8, 2024. If advance payment for machinery/equipment was made before April 8, 2024, such machinery/equipment is also not subject to compensation.

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

During the program validity term, one manufacturer of agricultural products and persons related to them can receive state support in the amount of no more than 10,000 minimum wages, established as at January 1, 2024, which is equal to UAH 71,000,000.00 (since January 1, 2024 the amount of the minimum wage is UAH 7,100.00). Control over compliance with this restriction is carried out by state bodies.

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.