Ukraine: New depreciation laws introduced

New depreciation rules were introduced in Ukraine as from 11 February 2010 to support the aircraft manufacturing industry (Law No. 1814-VI dated 20 January 2010 and published on 11 February 2010). In addition to general depreciation, Law No.1814-VI provides for bonus and accelerated depreciation:

- Bonus depreciation allows the immediate deduction of part of the value of the asset and depreciation of the remaining part at the standard general rates; and
- Accelerated depreciation allows depreciation at double the standard rates (except for assets in group 4, i.e. computers, software, telephones, microphones, etc.).

Bonus and accelerated depreciation may be applied on a voluntary basis in cases specifically prescribed by the corporate income tax law. These methods of depreciation only apply to aircraft manufacturers until 1 January 2016 and taxpayers purchasing new equipment for the production of alternative fuel until 1 January 2019. Law No.1814-VI also sets out the specific procedure for calculating bonus and accelerated depreciation.

In addition to the new depreciation rules, Law No.1814-VI amends Ukraine's 1994 law governing settlements in foreign currency by extending the general period in which receivables due from a nonresident should be settled from 90 to 180 days. The changes apply to receivables generated after 1 January 2010.