A legislative package has been introduced, proposing a reduction of the corporate tax rate to 9% for businesses operating in areas of active or potential military conflict, provided they meet specific criteria. The package also includes mechanisms for the regulation of credit and leasing obligations, as well as special conditions for the privatization of state and municipal property.
Another aspect of the proposed changes addresses civilian workers who support community operations amidst military risks. These individuals would be granted the status of “participants in ensuring the viability of areas affected by combat actions.”
The package outlines several guarantees, including additional paid leave, wage protections, medical and psychological assistance, rehabilitation, and social protection for family members.
Provisions suggest exempting certain incomes from personal income tax for confirmed periods of work in active combat zones. Work periods in such areas would count towards insurance contributions at double the rate, while work in areas of possible military action would be counted at one and a half times the rate. Documented employment from February 24, 2022, onwards is proposed for consideration.
“Frontline communities cannot be left alone with the risks of war. Today, people go to work under the threat of shelling, utility services are restoring damaged networks, medical workers are saving lives, energy workers are restoring power, and entrepreneurs are striving to maintain jobs. The government must not only thank these people for their resilience but create specific conditions for them to work and live in their communities,” stated Terехov.
He emphasized that support for frontline areas must integrate social protection with economic measures.
“If we want communities to survive today and have a future after the war, we need to preserve their main resource – people, jobs, and businesses,” he stressed.
Context
- Draft bills No. 16200 and No. 16201 were registered on October 29, 2026. The first concerns tax and other support measures for businesses and workers in conflict zones, while the second expands the options for extending the moratorium on payments under credit agreements for affected businesses. Both documents are currently under review by committees. They represent legislative proposals, not implemented benefits.
