Ukrainian President Viktor Yanukovych has signed a law on amendments to the Tax Code regarding residential property, under which individuals are exempted from paying property tax on immovable property other than land plots in 2013, as time to form a register of taxpayers is required, the press service of the Income and Tax Ministry of Ukraine reported on Thursday.
“Under Ukrainian law, the owners of residential property that is to be taxed will pay tax for 2013 in 2014. Before December 31, 2013, owners can check data on the basis of original documents on ownership rights to residential property and the area of this property. People can address the tax inspectorate that has jurisdiction at the place of registration of property owners,” reads the report.
The ministry noted that citizens who paid the tax this year can reclaim the funds paid. They are to address to the tax inspectorate with an application.
“The funds paid this year can be accrued for paying tax in 2014 if taxpayers agree to do this,” the ministry said.
When the president signed the law it will take effect next day after its official publication in the mass media.
As reported, the Ukrainian parliament on April 4, 2013 passed at second reading a bill on amendments to the Tax Code of Ukraine regarding residential property.
Tax agencies are to send a notification on the 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 of the completion of the verification are to submit information to the tax agencies where the property is located. The tax is paid in the place where the property is located.
According to the law, property taxes can be calculated, taking into account the gross area of several property facilities in ownership of one individual (an apartment, or 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, the combined gross area of which does not exceed 740 square meters, and 2.7% if it exceeds 740 square meters.
The tax rates will be no more than 1% for apartments with a 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 government proposed that the term for submitting tax declaration for companies is prolonged until February 20, while today it is set at February 1.
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.
