Should the declarant reflect in the one-time (special) voluntary declaration real estate, area of which exceeds norms specified in Paragraph 10 of Sub-section 9 Copy 4 Section XX of the Tax Code of Ukraine...

Should the declarant reflect in the one-time (special) voluntary declaration real estate, area of which exceeds norms specified in Paragraph 10 of Sub-section 9 Copy 4 Section XX of the Tax Code of Ukraine, that was purchased at the expense of funds from which taxes and levies were paid in advance?

According to Paragraph 4 Sub-section 9 Copy 4 Section XX “Transitional provisions” of the Tax Code of Ukraine of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – the TCU), the one-time (special) voluntary declaration is a special procedure for voluntary individual’s declaration (Paragraph 3 of this Sub-section) of assets located on the territory of Ukraine and / or abroad, if such individual’s assets were received (acquired) at the expense of income that was subject to taxation in Ukraine at the time of their accrual (receipt) and from which taxes and fees were not paid or not in full amount according to requirements of tax legislation and / or international agreements, consent to the binding nature of which is provided by the Verkhovna Rada of Ukraine, and / or which were not declared in violation of tax and currency legislation, the control of which is entrusted to the supervisory authorities during any of the tax periods that took place before 01.01.2021.

Paragraph 10 Sub-section 9 Copy 4 Section XX of the Code determines composition and volume of assets, sources of receipt (acquisition) of which in case of the individual’s non-use of right to submit the one-time (special) voluntary declaration are considered to be those from which taxes and levies were fully paid according to tax legislation, namely:

a) residential real estate:

apartment / apartments, the total area of which does not exceed a total of 120 square meters or property rights confirmed by relevant documents for such apartment or apartments in an apartment building of unfinished construction;

residential house / residential houses registered according to the established procedure in Ukraine, the total area of which does not exceed 240 square meters or a residential house of unfinished construction or houses of unfinished construction, the total area of which does not exceed 240 square meters, provided that such individual has the ownership right of the land plot of a corresponding purpose;

b) non-residential real estate objects, namely non-residential non-commercial buildings and / or non-residential buildings of unfinished non-commercial construction, the total area of which does not exceed 60 square meters.

As follows, if an individual owns real estate objects, which were purchased at the expense of funds from which all taxes and levies were paid under conditions of current legislation, an obligation to reflect such objects in the one-time (special) voluntary declaration does not arise for such declarant, regardless of the fact that area of these objects exceeds norms specified in Paragraph 10 Sub-section 9 Copy 4 Section XX “Transitional provisions” of the TCU.