Regarding the payment of tax on immovable property other than land plot

Press service of the State Tax Service of Ukraine, published 11 January 2024 at 11:51 Chapter: News

Payers of tax on immovable property other than land plot are individuals and legal entities, including non-residents, who are owners of residential and non-residential real estate.

For residential real estate, tax for individuals is calculated for area that exceeds 60 square meters for apartments, residential buildings – 120 square meters, various types of residential real estate, including their shares – 180 square meters.

Taxation base is the total area of residential and non-residential real estate object, including its shares.

Real estate tax rate is set by local self-government bodies, depending on the type of objects and their location, as a percentage of the minimum salary established on January 1 of the reporting year and may not exceed 1.5 percent for 1 square meter.

Since in 2024 tax is calculated for the reporting year 2023, tax rate is calculated based on the minimum salary established on 01.01.2023, which was 6700 UAH (the maximum rate per square meter cannot exceed 100.5 UAH (6 700 * 1.5 percent).

Therefore, amount of tax depends on the tax rate established by relevant local council for location of each real estate object and the total area of such objects.

For example, individual owns apartment in Kyiv city with the total area of 65 square meters. Tax amount is calculated as the product of the total area of apartment, reduced by 60 square meters. and tax rate, which is 1.5 percent (100.5 UAH per square meter).

Calculation of the tax amount:

(65-60) * 100.5 = 502.5 UAH.

For reference. If the taxpayer owns residential real estate object (objects), including its share total area of which exceeds 300 square meters (for apartment) and/or 500 square meters (for a house), tax amount is increased by 25 thousand UAH per year for each such object of residential real estate (its share).

 

Tax notifications-decisions on payment of tax amounts calculated according to norms of the Tax Code of Ukraine and relevant payment requisites, in particular, of local self-government bodies at the location of each of residential and/or non-residential real estate objects, are sent to the taxpayer by July 1 of year that occurs after the basic tax (reporting) period (year).

Tax liability is paid by individuals within 60 days from the date of delivery of tax notification-decision.

Also, payers of tax on immovable property other than land plot have a right to apply in the writing form to the controlling body at their tax address for reconciliation of data regarding:

residential and/or non-residential real estate objects, including their shares, owned by the taxpayer;

size of the total area of residential and/or non-residential real estate owned by the taxpayer;

usage  right to tax benefit;

amount of the tax rate;

accrued amount of tax.

In case of discrepancies between data of the controlling bodies and data confirmed by the taxpayer on the basis of originals of relevant documents, in particular, ownership documents, the controlling body recalculates amount of tax at the taxpayer's tax address and sends (hands over) new tax notification-decision. Previous tax notification-decision is considered canceled (withdrawn).