What cost of a land plot (within / outside Ukraine) is indicated in the one-time (special) voluntary declaration, including if there is no expert monetary assessment in the purchase and sale agreement?
Paragraph 1 Sub-section 94 Section XX of the Tax Code of Ukraine as of 02.12.2010 № 2755-VI with changes and amendments (hereinafter – TCU) stipulates that 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 levies 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.
Sub-paragraph “b” Sub-section 94 Section XX of the TCU and Sub-paragraphs 14.1.280, 14.1.281 Paragraph 14.1 Article 14 of the TCU stipulate that objects of the one-time (special) voluntary declaration may be individual’s assets owned by the declarant (including joint partial or joint common ownership right) and are (registered, in circulation, registered, etc.) on the territory of Ukraine and / or abroad as of the date of submission of one-time (special) voluntary declaration, including, but not limited to real estate (land, residential and non-residential real estate).
Paragraph 7 Sub-section 94 Section XX “Transitional Provisions” of the TCU determines basis for accrual of levy for the one-time (special) voluntary declaration basing on specific declaration objects.
Sub-paragraph 7.2 Paragraph 7 Sub-section 94 Section XX “Transitional Provisions” of the TCU stipulates that levy’s accrual base for declaration objects specified in Sub-paragraph “b” Sub-section 94 Section XX “Transitional Provisions” of the TCU is determined as:
declarant’s expenditures for the purchase (acquisition) of the declaration object;
cost determined on the basis of valuation of property and property rights, financial instruments and other assets. Assessment of the declaration object is carried out according to legislation of a country where such asset is located. Cost of assets, determined in foreign currency, is reflected in the one-time (special) voluntary declaration in UAH at the official exchange rate of national currency set by the National Bank of Ukraine as of the date of submission of one-time (special) voluntary declaration.
Declarant can add duly certified copies of documents confirming cost of declaration objects located (registered) in Ukraine to the one-time (special) voluntary declaration.
Declarant is obliged to document cost of declaration objects by adding duly certified copies of documents confirming the cost of declaration objects to the one-time (special) voluntary declaration, if such objects are located (registered) outside Ukraine.
It should be noted that legal basis for land valuation, professional valuation activities in the land valuation sphere in Ukraine is defined by the Law of Ukraine as of 11.12.2003 № 1378-IV “On land valuation” with changes and amendments.
Given the above specified, in an individual – declarant, who owns the real estate (land), acquired at the expense of income from which taxes have not been paid or not paid in full amount, submitting the one-time (special) voluntary declaration indicates basis for accrual of levy for the one-time (special) voluntary declaration, which is defined, in particular, but not exclusively, as:
declarant’s expenditures for the purchase (acquisition) of declaration object;
cost determined on the basis of valuation of property and property rights, financial instruments and other assets. Assessment of the declaration object is carried out according to legislation of a country where such asset is located.
At the same time, declarant independently decides on the definition of assets and information about them, which will be specified in the one-time (special) voluntary declaration.
