Compensation for damaged or destroyed citizen’s immovable property is not taxable

Income of a citizen received as compensation for damaged or destroyed immovable property according to the Law №2923-IX "On compensation for damage and destruction of certain categories of immovable property as a result of hostilities, acts of terrorism, sabotage caused by the armed aggression of Russian Federation against of Ukraine and the State Register of property damaged and destroyed as a result of hostilities, acts of terrorism, sabotage caused by the armed aggression of Russian Federation against Ukraine" is not taxable (hereinafter – Law № 2923).

This is provided for in Sub-paragraph 165.1.66 Paragraph 165.1 Article 165 of the Tax Code of Ukraine (hereinafter – Code), according to which the total monthly (annual) taxable income of the taxpayer does not include amount of income received as a compensation for damaged/destroyed immovable property according to the Law №2923.

Reminder! Law of Ukraine № 3219-IX as of 30.06.2023 "On amendments the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during the martial law", which entered into force on 01.08.2023, in particular made changes to Article 165 of the Code, namely: new Sub-paragraph 165.1.66 was added to Paragraph 165.1.