Rent for water: how to take into account limits and fill out declaration correctly

Press service of the State Tax Service of Ukraine, published 03 August 2026 at 12:58 Chapter: News

Use of water resources has its own rules and requirements. Payers of rent for special water use must correctly determine volume of used water, take into account established limits and correctly fill out tax declaration.

Special water use is paid and carried out on the basis of a special water use permit.

It is particularly in such a permit that annual limits for water withdrawal and use are determined. These indicators are one of the key guidelines for calculating amount of rent.

What does the amount of rent depend on?

Payers independently calculate amount of rent as a cumulative total from the beginning of year. This takes into account:

- actual volume of used water (underground, surface) from water bodies established in a special water use permit and/or in the integrated environmental permit;

- water use limits;

- established rent rates;

- appropriate coefficients.

Particular attention should be paid to compliance with the established limits. If water user uses water in excess of the annual limit, rent for the excess is calculated in a fivefold amount.

Correct reflection of limits in declaration

In a special water use permit, annual limit may be divided into separate types or areas of water use. For example, separate volumes may be determined for drinking and sanitary-hygienic needs, production or technological purposes.

In this case, the payer fills out separate annex 5 to declaration.

Important point: in line 7 “Established annual limit for water use” of a separate annex 5, the general annual limit is not indicated, but only amount allocated in a permit specifically for this area of ​​water use.

At the same time, sum of all annual water use limits specified in annex 5 must correspond to the total annual limit established in a permit.

Water body code must correspond to each type of water use

One more important detail for filling out declaration is correct indication of the water body code in line 6 of annex 5 to declaration. Code is selected according to the directory of water body codes (annex 16 to declaration) and must clearly correspond to the type of water use specified in a permit.

Correct completion of declaration and careful reflection of the established limits help to avoid errors in determining rent tax liabilities for special water use.

Payment procedure of rent for special water use, determining payers and taxation object is established by Article 255 of the Tax Code of Ukraine.

For reporting, rent tax declaration is used, approved by Order of the Ministry of Finance of Ukraine № 719 as of 17.08.2015. Calculation of the rent amount is carried out in annex 5 to declaration.