Regarding accrual and payment of tax on immovable property other than land plot

Press service of the State Tax Service of Ukraine, published 29 February 2024 at 10:57 Chapter: News

Payers of tax on immovable property other than land plot (hereinafter – tax) are individuals and legal entities, including non-residents, who own residential and/or non-residential real estate.

Tax notification-decision(s) on payment of amount/amounts of tax calculated according to Sub-paragraph 266.7.1 Paragraph 266.7 Article 266 of the Tax Code of Ukraine (hereinafter – Code), together with a detailed calculation of amount/amounts of tax 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 the controlling body in manner determined by Article 42 of the Code, by July 1 of year following basic tax (reporting) period (year).

Regarding tax benefits for immovable property other than land plot.

Tax exemptions for payment of tax on immovable property other than land plot are defined in Paragraph 266.4 Article 266 of the Code.

Tax base of object/objects of residential real estate, including their shares owned by individual taxpayer, is reduced:

a) for apartment/apartments regardless of their number per 60 square meters;

b) for residential house/houses, regardless of their number – per 120 square meters;

c) for various types of residential real estate objects, including their shares (in case of simultaneous ownership by the taxpayer of apartment/apartments and residential house/houses, including their shares) – per 180 square meters.

Such reduction is granted once for each basic tax (reporting) period (year) (Sub-paragraph 266.4.1 Paragraph 266.4 Article 266 of the Code).

Rural, settlement and city councils establish exemptions from tax paid in relevant territory on residential and/or non-residential real estate owned by individuals or legal entities, public associations, charitable organizations, religious organizations of Ukraine, statutes (provisions) of which are registered according to procedure established by the law and are used to ensure activities provided for by such statutes (provisions).

Exemptions from tax paid in relevant territory on residential and non-residential real estate objects for individuals are determined based on their property status and income level (Sub-paragraph 266.4.2 Paragraph 266.4 Article 266 of the Code).

Tax benefits provided for by Sub-paragraphs 266.4.1 and 266.4.2 Paragraph 266.4 Article 266 of the Code for individuals do not apply to:

taxation object/objects, if area of such object/objects exceeds five times the size of non-taxable area established by Sub-paragraph 266.4.1 Paragraph 266.4 Article 266 of the Code;

taxation object/objects, used by their owners for the purpose of obtaining income (rented, leased, loaned, used in entrepreneurial activities).  

The following are not subject to tax on immovable property other than land plot:

objects of residential and non-residential real estate, which are located in exclusion zones and unconditional (obligatory) resettlement, defined by the law, including their shares;

buildings of family-type childrens’ homes;

dormitories;

residential real estate unfit for habitation, including in connection with emergency state, recognized as such according to decision of village, settlement, city council or council of united territorial community, which was created according to the law and perspective plan for formation of community territories;

objects of residential real estate, including their shares belonging to orphans, children deprived of parental care and persons from among them recognized as such according to the law, children with disabilities who are raised by single mothers (parents), but not more than one such object per child;

buildings of preschool and general educational institutions, regardless of the ownership form and sources of financing, used to provide educational services;

objects of residential real estate belonging to big families or adoptive families with five or more children, who are raised.

At the same time, temporarily for a period of the martial law on the territory of Ukraine, introduced by Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 64/2022 as of 24.02.2022, approved by the Law of Ukraine "On еру approval of Decree of the President of Ukraine "On introduction of the martial law in Ukraine" № 2102-IX as of 24.02.2022, until December 31 of year in which martial law was suspended or abolished, provisions of Article 266 of the Code are applied taking into account the following peculiarities:

tax on immovable property other than land plot, is not accrued and paid, in particular, by individuals:

1) for residential and/or non-residential real estate located in territories of active hostilities or in territories of Ukraine temporarily occupied by the russian federation:

for 2021 and 2022 – for residential real estate objects, including their shares owned by individuals;

for a period from March 1, 2022 to December 31, 2022 – for non-residential real estate owned by individuals.

Starting from January 1, 2023 for residential and/or non-residential real estate objects, including their shares owned by individuals and/or legal entities located in territories of active hostilities or in territories of Ukraine temporarily occupied by the russian federation, which are included in the List of territories where hostilities are (were) being ongoing or temporarily occupied by the russian federation, tax on immovable property other than land plot is not accrued and paid for a period from the first day of month in which the beginning date of active hostilities or temporary occupation was determined for relevant territories, until the last day of month in which hostilities or temporary occupation ended in relevant territory.

Dates of beginning and end of active hostilities or temporary occupation are determined according to data of the List of territories where hostilities are (were) ongoing or temporarily occupied by the russian federation.

List of territories where hostilities are (were) ongoing or temporarily occupied by the russian federation is determined according to procedure established by the Cabinet of Ministers of Ukraine;

2) for residential and/or non-residential real estate objects destroyed as a result of hostilities, terrorist acts, sabotage caused by armed aggression of the russian federation against Ukraine for 2021 and subsequent tax (reporting) periods – for residential and/or non-residential real estate objects, including their shares, which are owned by individuals, data on the destruction of which are entered in the State property register damaged and destroyed as a result of hostilities, terrorism acts, sabotage caused by armed aggression of the russian federation against Ukraine (hereinafter – Property register);

3) for damaged objects of residential and/or non-residential real estate (such as those requiring capital repair, reconstruction or restoration as a result of hostilities, terrorism acts, sabotage caused by armed aggression of the russian federation against Ukraine):

for 2021 and subsequent tax (reporting) periods – for residential real estate objects, including their shares owned by individuals, which were damaged in 2022 as a result of hostilities, terrorism acts, sabotage caused by armed aggression of the russian federation against Ukraine and data on damage of which are entered in the Property register. Accrual of tax on immovable property other than land plot on such objects of immovable property is renewed starting from month following the month in which, according to the Property register, objects of residential real estate are overhauled, reconstructed, restored and recognized as habitable;

for a period from March 1, 2022 and subsequent tax (reporting) periods – for non-residential real estate objects, including their shares owned by individuals, which were damaged in 2022 as a result of hostilities, terrorism acts, sabotage, caused by armed aggression of the russian federation against Ukraine and data on damage of which are entered in the Property register. Accrual of tax on immovable property other than land plot on such real estate objects is renewed starting from month following the month in which, according to the Property register, non-residential real estate objects were overhauled, reconstructed, restored and recognized as suitable for use under destination.

For residential and/or non-residential real estate objects, including their shares owned by individuals, damaged (such as those in need of capital repair, reconstruction or restoration) in tax (reporting) periods starting from January 1, 2023 as a result of hostilities, terrorist acts, sabotage caused by armed aggression of the russian federation against Ukraine, tax on immovable property other than land plot is not accrued and paid for a period from the first day of month in which damage to residential and/or non-residential real estate was recorded according to data of the Property register to the first day of month following the month in which, according to data of the Property register, objects of residential and/or or non-residential real estate capitally repaired, reconstructed, restored and recognized as suitable for habitation/use for the intended purpose.

 In terms of residential/non-residential real estate objects, including their shares, which as a result of hostilities, terrorist acts, sabotage caused by armed aggression of the russian federation against Ukraine, suffered minor damage, suitable for living/use for the intended purpose (respectively) and are subject to restoration through the current repairs, village, settlement, city councils, military administrations or military-civilian administrations have a right to:

1) set tax rates of tax on immovable property other than land plot in amount lower than amount of tax on immovable property other than land plot established by the decision of relevant local self-government body for a certain type of real estate, payable in relevant territory;

2) exempt from payment of tax on immovable property other than land plot.

For taxpayers – individuals, the controlling body independently calculates tax liability and sends (delivers) tax notification-decision for the tax (reporting) periods of 2021 and 2022 until December 31, 2023 with exception of tax liabilities for non-residential real estate objects located in territories of active hostilities or in territories of Ukraine temporarily occupied by the russian federation, which are included in the List of territories where hostilities are (were) ongoing or temporarily occupied by the russian federation, for which the controlling body calculates tax liability and sends (delivers) tax notification-decision for the tax (reporting) periods of 2021 and January – February 2022, not later than the first day of month that follows six months after the date of end of active hostilities or temporary occupation.

Regarding payment of tax, tax liability for the reporting year 2023 is paid by individuals within 60 days from the date of delivery of tax notification-decision.