Land payment: what tax benefits apply during the martial law

Land plots located in areas of active hostilities or temporarily occupied

Land tax (land tax and rent for land plots of state and municipal ownership) is not accrued or paid for land plots (land shares (parts)) located in areas of active hostilities or in territories of Ukraine temporarily occupied by the russian federation, and owned or used, including under lease for:

- individuals from 01.01.2022 to 31.12.2022;

- legal entities and individuals-entrepreneurs from 01.03.2022 to 31.12.2022.

From 01.01.2023, no land tax is charged or paid:

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 active hostilities or temporary occupation of relevant territory was completed.

From 01.05.2024, territories of active hostilities where state electronic information resources operate are equated to territories of active hostilities, therefore, land tax is also not accrued or paid for such territories from 01.05.2024.

Dates of the beginning and end of active hostilities or temporary occupation are determined according to data from the List of territories in which hostilities are (were) ongoing or temporarily occupied by the russian federation, which is approved by Order of the Ministry for Reintegration of Temporarily Occupied Territories of Ukraine.

Land plots under conservation or contaminated with explosives

Landowners can also receive tax benefit if their land is under conservation, contaminated with explosives or may become contaminated by them (is potentially contaminated). Decision to grant benefit is made by the relevant body: village, settlement or city council, military or military-civilian administration (hereinafter – Councils).

Land plots under conservation:

Tax is not accrued based on data from the State Land Cadastre:

- for state and municipally owned lands – from the first day of month when conservation project is approved until the end of month when land protection measures are completed according to data from the State Land Cadastre;

- for privately owned lands – from the moment of entering information into the State Land Cadastre regarding land protection measures until the end of month, when these measures are completed according to data from the State Land Cadastre.

- For state and municipally owned lands, rent is also not accrued under lease agreements.

- After completion of land protection measures, accrual of land tax will resume from the first day of the following month.

- If the controlling authority does not have information regarding land conservation, land tax is calculated based on data provided by the payer. In case of discrepancies, the controlling authority has to recalculate amount of land tax within 10 working days and send new tax notification-decision.

Land areas contaminated with explosives:

- Land tax is not accrued for a period when the plot is considered contaminated according to the State Land Cadastre data:

- starting from the first day of month when territory survey by the mine action operators begins;

- ends on the last day of month when the plot is deemed suitable for use.

- For territories of active hostilities or temporarily occupied territories, this period is calculated from month after the end of hostilities or occupation, provided that the land owners submit application and the Council adopts decision on benefits. Please note that although the ultimate goal of the land owner's application is to obtain tax benefit, the application must be submitted regarding potential contamination of the land with explosive objects.

- Land tax is resumed from the first day of month following the month when the land plot is again considered suitable for use.

Please note that grounds for non-assessment of land tax are data of the State Land Cadastre.

Land plots that are unsuitable for use due to the potential threat of contamination by explosive objects:

If the plot is deemed unsuitable due to possible contamination with explosives, land tax is not accrued from the first day of month on which the Council’s decision to grant benefit falls, based on the taxpayer’s application, until the last day of month on which the earlier date falls:

- or the end of a period of validity of the privilege,

- or cancellation of the decision,

- or date of commencement of the survey of the plot by mine action operators.

- In case of absence of data in the controlling authority, land tax is calculated based on information provided by the payer, and in case of discrepancies, the controlling authority recalculates tax amount within 10 working days and issues new tax notification-decision.

- At the same time, it should be noted that according to decisions of the Councils (with obligatory indication of cadastral numbers), individual tax benefits may be provided to legal entities and individuals for land plots that are recognized as unsuitable for use due to the threat of contamination by explosive objects.

- Councils’ decisions on benefits are made annually, if there are appropriate applications from the taxpayers, and are valid until the end of current calendar year.

To receive the benefit, taxpayers apply with application and relevant documents to the Council at the location of taxable objects.

Land plots on which residential and/or non-residential real estate objects were destroyed as a result of hostilities:

Land tax is not accrued or paid for land plots on which residential and/or non-residential real estate objects are located, destroyed as a result of hostilities, terrorist acts, sabotage, data on the destruction of which and data on land plots on which the specified real estate objects were located are entered into the State register of property damaged and destroyed as a result of hostilities, terrorist acts, and sabotage caused by the armed aggression of the russian federation against Ukraine (hereinafter – Register of damaged property), within the areas of land plots:

for individuals – owners of destroyed residential real estate:

in villages – not more than 0.25 hectares;

in settlements – not more than 0.15 hectares;

in cities – not more than 0.1 hectares;

for individuals and legal entities – owners of destroyed non-residential real estate and legal entities – owners of destroyed residential real estate:

100 percent of the ​​ land plot area – if total area of ​​ destroyed residential or non-residential real estate object is equal to or exceeds one third of the total area of ​​the land plot on which such destroyed real estate object was located;

50 percent of the land plot area – if total area of ​​ destroyed residential or non-residential real estate does not exceed one third of the total area of ​​the land plot on which such destroyed real estate was located.

Tax is not accrued and not paid for a period:

- from the first day of month on which the destruction date of real estate falls, according to the Register of damaged property,

- until the last day of month in which property right to a newly constructed residential and/or non-residential real estate object on such land plot is registered 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 01.01.2026.

Important!

Temporarily, for a period of the martial law in the territory of Ukraine, until December 31 of year in which martial law is terminated or abolished, requirements regarding establishment of rates and benefits for local taxes and/or levies and/or decisions on amendments to such decisions shall not apply to decisions of the Councils:

- terms of their adoption and entry into force;

- possibility of providing individual tax benefits.