Taxation of residential real estate object(s) with a total area exceeding 300 square meters (for apartment)
Question:
Does the norm of subparagraph 266.7.11 of Paragraph 266.7 Article 266 of the Tax Code of Ukraine apply to legal entity that is owner of 10 residential real estate objects (apartments), each of which has an area of 200 square meters? If it applies, then how – once or to each residential real estate object?
Answer:
Procedure for collecting tax on real estate other than land plot (hereinafter – Tax) is determined by Article 266 of the Tax Code of Ukraine (hereinafter – Code).
Sub-paragraph 266.7.11 Paragraph 266.7 Article 266 of the Code stipulates that if the taxpayer owns residential real estate object (objects), including its share, owned by individual or legal entity – taxpayer, total area of which exceeds 300 square meters (for apartment) and/or 500 square meters (for house), amount of tax calculated, according to with Sub-paragraphs "a" - "g" of Sub-paragraph 266.7.1 of this Paragraph, is increased by 25000 UAH per year for each such residential real estate object (its share).
The specified norm of the Code provides for increase of 25000 UAH of tax liability if legal entity – taxpayer has residential real estate (apartment) with a total area exceeding 300 square meters.
If legal entity has several residential real estate objects (apartments), norm of Sub-paragraph 266.7.11 Paragraph 266.7 Article 266 of the Code applies only to that object (apartment) of which total area exceeds 300 square meters, to other residential real estate objects (apartments) of which total area (each separately) does not exceed 300 square meters, norm of Sub-paragraph 266.7.11 Paragraph 266.7 Article 266 of the Code does not apply.
This applies to cases of ownership of a share of residential property (apartment), if area of this share exceeds 300 square meters.
Since Sub-paragraph 266.7.11 Paragraph 266.7 Article 266of the Code determines increase in the amount of Tax for each residential real estate object (apartment), total area of which exceeds 300 square meters, application of the specified norm of the Code does not provide for the summation of areas of all residential real estate objects (apartments) owned by the Taxpayer.
