Tax benefits for transfer of medicinal products expanded: Law adopted

Pharmaceutical and medical law Tax law and disputes

On July 3, 2025, Law of Ukraine No. 4472-IX came into force, expanding patient access to medicinal products. The law introduces new opportunities for the procurement of medicinal products (hereinafter referred to as MPs) under managed entry agreements (hereinafter referred to as MEAs).

Henceforth, the state-owned enterprise "Medical Procurement of Ukraine" (hereinafter referred to as SOE “MPU”), acting as the purchaser under MEAs, is authorized to procure not only using funds from the state budget, but also from local budgets, as well as from state or municipal enterprises that hold a license for conducting medical practice.

The new model of blended financing, involving various budget sources, aims to significantly expand patient access to innovative MPs and simultaneously increase the volume of procurements under MEAs.

On July 5, 2025, in parallel with the above-mentioned law, Law of Ukraine No. 4505-IX came into force regarding tax amendments to support the expansion of patient access to medicinal products under MEAs.

Under the new law, tax benefits, which previously applied only to operations financed from the state budget, now also apply to MEAs funded from local budgets or from the funds of state and municipal healthcare facilities, specifically:

SOE “MPU” will not apply an increase to the financial result (will not recognize as profit) transactions involving the free transfer of MPs to healthcare facilities if those MPs were procured under MEAs.
For patients, such gratuitously received MPs are not subject to taxation and are exempt from personal income tax and the military levy.

Thus, due to the expansion of financing sources for MEA-based procurements, corresponding amendments have been made to tax legislation regarding tax benefits. Going forward, the benefits apply regardless of the source of funding, whether from the state budget, local budgets, or state or municipal enterprises licensed to conduct medical practice.

Should you have any queries or suggestions, feel free to contact Vitalii Savchuk, Partner and Head of Tax at LA Law Firm, via savchuk@l-a.com.ua.