To the attention of local self-government bodies and land tax payers for land plots granted for the permanent use!

Local councils, on the basis of the powers provided by Paragraph 10.2¹ Article 10 of the Tax Code of Ukraine (hereinafter - Code) make decisions on the establishment of local taxes, including property tax, including land tax (Sub-paragraph 14.1.147 Paragraph 14.1 Article 14, Sub-paragraph 265.1. 3 Paragraph 265.1 Article 265 of the Code), specifying all elements of taxes provided for by Article 7 of the Code.

Intervals of admissible rates as an element of the land tax are established by Articles 274 and 277 of the Code.

In particular, for land plots that are in the permanent use by business entities that do not belong to the state and communal ownership forms, Paragraph 274.2 Article 274 of the Code sets rate limit of not more than 12 percent of the normative monetary valuation of the land plot.

Local councils that plan to approve the land tax rate of 12 percent of the normative monetary valuation of the land plot, determining circle of payers to whom it will apply, should be guided by the list of legal entities that can acquire right to the permanent use of the land plot, which is defined by Article 92 of the Land Code of Ukraine.