Realtors’ duty to notify the controlling body about the real estate lease agreements concluded through them

Press service of the State Tax Service of Ukraine, published 22 May 2023 at 10:51 Chapter: News

Sub-paragraph 170.1.6 Paragraph 170.1 Article  170 of the Tax Code of Ukraine (hereinafter - Code) stipulates that business entities that conduct intermediary activities related to the provision of real estate rental services (realtors) are obliged to send information about civil law contracts (agreements) concluded through their mediation on lease of real estate to the controlling body at the registration place. Information is submitted within terms provided for submission of tax calculation, according to the form established by the central executive body, which ensures formation and implementation of the state financial policy.

Order of the Ministry of Finance of Ukraine No. 497 as of 13.05.2017 approved form for submission of information by business entities involved in intermediary activities related to provision of the real estate rental services (realtors) on civil law contracts (agreements) concluded through their mediation (hereinafter - Information) to the controlling bodies at the registration place within time limits provided for submitting tax calculation.

Tax calculation for the basic reporting (tax) period, equal to the calendar quarter, is submitted within 40 calendar days following the last calendar day of the reporting (tax) quarter (Sub-paragraph 49.18.2 Paragraph 49.18 Article 49 of the Code).

For violation of Oder and/or terms of submission of the specified information, the realtor is responsible, provided for in Article 1191 of the Code.

Sub-paragraph 1191.2 Article 1191 of the Code stipulates that violation made by the business entity that conducts intermediary activities related to the provision of real estate rental services (real estate agent) of the procedure and/or deadlines for submitting information about civil law contracts (agreements) on real estate rental concluded through the mediation, shall attract entails the imposition of a fine in the amount of 680 UAH for each such violation.

Actions provided for in Sub-paragraph 1191.2 Article 1191 of the Code, committed by the business entity to which a fine for such a violation was applied during the year, entails imposition of a fine in the amount of 1 360 UAH for each such violation (Paragraph 1191.3 Article 1191 of the Code).

Taking into account the above specified, business entities that conduct intermediary activities related to provision of the real estate rental services (realtors) have to send Information at the registration place.