The Cabinet of Ministers of Ukraine has proposed that in 2013 a tax on property other than land plots is not collated from individuals, as a certain period of time is required to form the register of taxpayers.
The initiative is stipulated in cabinet draft law No. 2405 on amendments to Article 265 of the Tax Code of Ukraine regarding residential property, which was revised for second reading. The major part of members of the parliamentary committee for customs and tax policies at a meeting on Wednesday recommended that Ukrainian parliament pass the bill at second reading, taking into account several amendments.
Tax agencies are to send a notification on verification of the number of residential properties and their living area to owners of property by July 1, 2013 to form the register. In turn, property owners by December 31, 2013 are to verify data obtained from tax agencies with information on the basis of documents on ownership rights to property. Then tax agencies within 10 days after the completion of the verification is to submit the information to tax agencies where the property is located. The tax is paid in the place where property is located.
According to the bill, property taxes can be calculated, taking into account the gross area of several property facilities in ownership of one individual (an apartment, a house. The taxation base is reduced by 370 square meters of the indicator. The benefit is given once for each basic taxation (reporting) period (year).
According to the current requirements, property tax is calculated separately for each facility if individuals have several types of property under ownership.
In addition, the government proposed that the tax scale should be differentiated more, foreseeing the introduction of a tax of 1% of the minimum wage per square meter for individuals who own various types of property, which combined gross area does not exceed 740 square meters and 2.7% if it exceeds 740 square meters.
Tax rates of no more than 1% for apartments with gross areas of no more than 240 square meters and houses with gross areas of no more than 500 square meters and 2.7% for apartments with gross areas of over 240 square meters and houses with gross areas of over 500 square meters.
The document also says that tax rates for companies are 1% for apartments that have gross areas that do not exceed 240 square meters and houses with gross areas of no more than 500 square meters, and 2.7% for apartments with gross areas of over 240 square meters and houses with gross areas of over 500 square meters. The government proposed that the term of submitting tax declaration for companies is prolonged until February 20, while today it is set until February 1.
The cabinet also proposed that the tax is calculated by tax agencies on the place of the taxation address (place ore registration) of individual owners of property, while according to current law, the tax is calculated for the place where property is located.
The bill introduces a 10-day period during which tax agencies are to send a tax report decision after obtaining information on the appearance of ownership rights to the newly built facilities and if ownership rights to the facility are transferred to other owners within a calendar year.
In addition, the cabinet proposed that the current law is expanded with a requirement according to which individuals in rural areas can pay the tax via the cash desks of rural councils using a report on the acceptation of tax and duties.
The document also expands a list of citizens, who can obtain tax benefits for one facility, adding orphaned children, children deprived of parental care, and children with disabilities who are brought up by single mothers. In addition, the list was expanded to include residential facilities belonging to monasteries and convents and no more than two housing facilities of other religious organizations.
As reported, the Ukrainian parliament on April 4, 2013 passed at first reading bill No. 2405 on amendments to Article 265 of the Tax Code of Ukraine regarding residential property.
From January 1, 2013, Article 265 of the Tax Code of Ukraine took effect, according to which a tax on property other than land plots was introduced. The size of the tax on housing was based on living space, but not the gross area of the house.
Earlier the Cabinet of Ministers registered a draft law foreseeing the collection of property tax from the gross area of apartments and houses, not from living space. However, later it was decided that the bill on the calculation of the property tax using the gross area should be discussed by the parliament in connection with the bill on the introduction of a wealth tax on individuals.
