Main points
- Exemption from paying land tax in Ukraine applies to people with disabilities, large families, pensioners, war veterans, and victims of the Chernobyl disaster.
- Tax exemption is valid within certain area norms for various types of land plots, such as personal farms, housing construction, gardening, etc.
Who doesn't pay taxes / Photo Unsplash
Not all land owners in Ukraine are required to pay land tax. The law provides for privileges for certain categories of citizens, but they are valid only under certain conditions and within the established norms.
Who can avoid paying land tax?
Lawyer Larysa Kis, in a comment to Channel 24 , said that exemption from paying land tax applies to certain categories of citizens. They are clearly specified in the legislation.
Larisa Kis
Lawyer of the De Jure Law Firm
No tax is paid for land plots unsuitable for use due to the potential threat of their contamination by explosive objects, in the event that village, settlement, city councils, military administrations and military-civilian administrations adopt decisions to establish tax benefits for the payment of local taxes and/or fees in accordance with the procedure specified by this Code.
At the same time, based on paragraph 281.1 of Article 281 of the Tax Code of Ukraine, the following are exempt from paying land tax:
- persons with disabilities of the first and second groups;
- individuals raising three or more children under the age of 18;
- pensioners (by age);
- war veterans;
- individuals who suffered as a result of the Chernobyl disaster.
What area of land can be exempted from tax?
Tax exemption applies to various types of land plots, depending on their purpose, such as for personal use, housing construction, gardening, etc. within the following limits:
- for personal farming – no more than 2 hectares;
- for the construction and maintenance of a residential building, outbuildings and structures (homestead plot): in villages – no more than 0.25 hectares, in settlements – no more than 0.15 hectares, in cities – no more than 0.10 hectares;
- for individual summer cottage construction – no more than 0.10 hectares;
- for the construction of individual garages – no more than 0.01 hectares;
- for gardening – no more than 0.12 hectares.
At the same time, owners of land plots, land shares and land users are exempt from paying the tax for the period of validity of the single tax of the fourth group, provided that the land plots and land shares (shares) are leased to a payer of the single tax of the fourth group.
Please note! An individual who, as of January 1 of the current year, owns several land plots of the same type of use, the area of which exceeds the limits of the maximum norms, shall, by May 1 of the current year, submit a written application in any form to the control body at the location of any land plot for independent selection/change of land plots for the application of the benefit.
Land lease taxes: when does the unit owner have to pay on their own?
Previously, we wrote about the cases in which the land owner must pay land tax independently.
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Owners of land shares who rent them out must pay personal income tax at a rate of 18% and military levy at a rate of 5%.
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If the tenant is an individual without registration as an entrepreneur, the unit owner is required to independently file a tax return and pay taxes.
The object of taxation is determined based on the amount of rent specified in the lease agreement, but not less than the minimum amount of rent established by the legislation on land lease.