OREANDA-NEWS. February 04, 2013. January 31, 2013, a ‘round table’ was held on Real Estate Tax involving Ministry of Finance and Ministry of Revenues and Duties experts, non-government officials, professionals and reporters.

According to the Tax Code of Ukraine, tax on real estate other that land plots is introduced as from January 1 2013.

The said rule’s guideline is that the tax should not burden those liable to it, said Mr. Mykola Chmeruk, Director of Tax and Customs Policy and Accounting Methodology Department, Ministry of Finance.

He proceeded to say that this tax would be imposed on a residential property’s living space. In this process, individuals’ tax will be assessed by tax authorities based on records of the State Real Estate Titling Register (citizens shall not submit any return) with a benefit applied as follows:

a)      for an apartment – by 120 sq. m.

b)      for a residential building – by 250 sq. m.

The tax will be so deducted for a property where the individual taxpayer is registered as provided by law, or for his any other property as he chooses.

Before July 1, reported year, tax agencies will send liable individuals a tax decision notice with the amount of tax due and payment details. The tax should be settled 60 days of handing the tax decision notice.

It is noteworthy that, if a taxpayer is financially unable to comply with the tax, the tax agency may provide him with installments on request.

Legal entities shall assess the tax on their own as of January 1, reported year, and submit the return before February 1.

The tax shall be settled by advance calls to be reflected in the annual tax return, on a quarterly basis on or before the 30th of the month following the reported quarter.

The tax will thereby be assessed based on the property’s living space insofar as is evidenced by entitling documents.

As for tax rates, they will be as follows:

- no more than 1 percent of statutory minimum wages as of January 1, reported year (UAH 11.47 for 2013) for apartments with living space of or under 240 sq. m., and for residential buildings with living space of or under 500 sq. m. Municipalities may to this effect decide to impose less than one percent;

- 2.7 percent of statutory minimum wages (30.97 for 2013) - for apartments with living space of over 240 sq. m., and residential buildings with living space of over 500 sq. m.