Clarification regarding the land tax payment according to provisions of the Law of Ukraine № 3603 as of 23.02.2024 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding improvement of online communication with taxpayers and clarification of certain legislative provisions" (hereinafter – Law)
Changes were made to the land tax payment procedure according to the Law from March 16, 2024.
Land tax payment in territory where obligatory evacuation of population has been intorduced
According to changes introduced by the Law to Paragraph 12.3 Article 12 of the Tax Code of Ukraine (hereinafter – Code), on the basis of decision of authorities specified in Part 3 Article 33 of the Civil Protection Code of Ukraine (except for heads of business entities) on the obligatory evacuation of population, decision of local self-government body or military administration or military-civilian administration must be adopted (in territories where relevant village, settlement and city councils temporarily do not exercise their powers) on the establishment of tax benefits for the land tax payment (land tax and rent for land plots of state and communal property) and tax on real estate other than land plots for individuals and legal entities (hereinafter – Decision).
According to Part 3 Article 33 of the Civil Protection Code of Ukraine, decisions on the evacuation are made, in particular:
at the state level – Cabinet of Ministers of Ukraine;
at the regional level – Council of Ministers of the Autonomous Republic of Crimea, regional, Kyiv and Sevastopol city state administrations;
at the local level – district, district state administrations in Kyiv or Sevastopol cities, relevant local self-government bodies.
Land tax payment for land plots, on which residential and/or non-residential real estate objects are located, destroyed as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of Russian Federation against Ukraine (hereinafter – destroyed real estate objects)
New Sub-paragraph 69.141 was added to Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the Code by the Law, according to which no land tax (land tax and rent for land plots of state and communal property) is accrued or paid for land plots on which destroyed real estate objects are located, data on the destruction of which and data on land plots on which the specified destroyed real estate objects entered into the State register of property damaged and destroyed as a result of hostilities, acts of terrorism, and sabotage caused by the armed aggression of Russian Federation against Ukraine (hereinafter – Property register) were located within areas (land plots) determined in this Sub-paragraph.
Areas of land plots covered by this Sub-paragraph are limited, in particular, for legal entities – owners of destroyed non-residential and residential real estate, namely:
- 100 percent of the land plot’s area – if total area of destroyed real estate object is equal to or exceeds one third of the total area of land plot on which such destroyed real estate object was located;
- 50 percent of the land plot’s area – if total area of destroyed real estate object does not exceed one third of the total area of land plot on which such destroyed real estate object was located.
Land tax for land plots on which destroyed real estate objects are located is not calculated and paid for a period starting from the first day of month on which destruction date of the real estate falls, according to Property register, to the last day of month in which it is registered property right to residential and/or non-residential real estate object newly built on such land plot in the State register of property rights to real estate and their encumbrances, or until the last day of month in which martial law in Ukraine is terminated or abolished, but not later than January 1, 2026.
Land tax payers who, prior to the date of entry into force of the Law according to Paragraph 286.2 Article 286 of the Code, declared land tax liabilities for land plots specified in this Sub-paragraph, have a right to adjust accrued land tax liabilities for a period starting from the first day of month on which the destruction date of immovable property falls, according to Property register, by submitting clarifying tax declarations in manner specified by the Code.
Sub-paragraph 5 Paragraph 2 of Procedure for maintaining State register of property damaged and destroyed as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of Russian Federation against Ukraine, approved by Resolution of the Cabinet of Ministers of Ukraine № 624 as of 13.06.2023 "Some matters of ensuring functioning of 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" (hereinafter – Procedure), stipulates that entry and correction of information (documents) about damaged and destroyed property, about persons whose property was damaged or destroyed, damage and losses caused as a result of damage to such property, as well as other information specified by the Procedure, is provided by the public registrar.
List of public registrars of Property register is determined by Paragraph 15 of the Procedure, which includes, in particular, local state administrations, military administrations, military-civilian administrations; executive bodies of village, settlement, city, district councils in the city (if they are created).
Therefore, with regard to the list of documents and actions that must be taken in order to use special procedure for the land tax payment, it is advisable for payers to contact relevant public registrar at the land plot’s location.