Year 2013: Meet the Real Estate Taxation in Ukraine Print
Thursday, 17 January 2013

According to the transitional provisions of the Tax Code of Ukraine, since January 1, 2013 a tax on real proberty, other than land is imposed. In this regard it is meant habitable, residential property.

Taxpayers are individuals and legal entities, both residents and nonresidents.

Particularly, not taxed homes are:

• residential properties, which are located in the exclusion zones and zones of mandatory evacuation, defined by law;

• family-type orphanage homes;

• residential properties owned by large families and foster families, bringing up three children and more (but not more than one such object per family);

• hostels

The tax base is residential property of individuals which is calculated by State Taxation Service based on data from the State Register of property rights to real property.

Moreover, according to Tax Code of Ukraine such a base for individuals decreases:

a) for the apartment - 120 sq.m. untaxed;

b) for the house - 250 sq.m. untaxed.

This means, i.e. if the area of ​​the apartment does not exceed 120 square meters, the tax is not charged, if, for example, the apartment has an area of ​​130 sq.m., the tax is payed on the 10 sq.m.

Moreover, this exemption is available 1 time per year and applied to one object - either where the person is registered, or at the option of the person to any other residential property, which it owns.

For legal entities such benefits has not been established.

The tax rates are set to village, town or city council, considering the following:

• For apartments, with living area of ​​less than 240 sq.m. and houses, with living area of ​​less than 500 sq.m., the tax rate can not exceed 1 percent of the size of min. salary set at 1 January of the reporting year;

• for apartments, residential area exceeding 240 square meters. meters, and houses, residential area exceeding 500 square meters. meters, the tax rate is 2.7 percent, the min. salary set at 1 January of the year.

The tax is paid by individuals against the decision of a notice of State Taxation Service at the location of real property within 60 days of receiving notice of the tax-solutions before July 1 of the year.

Taxpayers - legal entities must independently calculate the amount of tax as of January 1 of the reporting year and before February 1 submit the tax declaration, by division the annual amount of tax into equal shares for each quarter; the tax is paid quarterly through down payments.