Payers of tax on immovable property other than land plot are individuals and legal entities, including non-residents, who own residential and/or non-residential real estate.
Tax notification-decision on payment of amount/amounts of tax calculated, according to Sub-paragraph 266.7.1 of Paragraph 266.7 Article 266 of the Tax Code of Ukraine (hereinafter – Code), with a detailed calculation of amount/amounts of tax and relevant payment requisites, in particular, of local authorities self-government by the location of each of objects of residential and/or non-residential real estate, 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).
Tax benefits for immovable property other than land plot are defined in Paragraph 266.4 Article 266 of the Code.
The tax base of object/objects of residential real estate, including their shares owned by individual-tax payer, is reduced for:
a) apartment/apartments regardless of their number – for 60 square meters;
b) residential building/buildings, regardless of their number – for 120 square meters;
c) various types of residential real estate objects, including their shares (in case of simultaneous ownership by the taxpayer of apartment/apartments and residential building/houses, including their shares) – for 180 square meters.
Such reduction is granted once for each basic tax (reporting) period (year) (Sub-paragraph 266.4.1 of Paragraph 266.4 Article 266 of the Code).
Rural, village 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).
Benefits 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 of Paragraph 266.4 Article 266 of the Code).
Tax benefits provided for by Sub-paragraphs 266.4.1 and 266.4.2 of Paragraph 266.4 Article 266 of the Code for individuals do not apply to:
taxation object/objects, if area of such/such object/objects exceeds five times the size of non-taxable area established by Sub-paragraph 266.4.1 of Paragraph 266.4 Article 266 of the Code;
taxation object/objects, used by their owners for purpose of receiving income (rented, leased, loaned, used in business 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 zones of exclusion and unconditional (mandatory) resettlement, defined by the law, including their shares;
buildings of family-type children's homes;
dormitories;
residential real estate unfit for living, including in connection with emergency state, recognized as such according to decision of settlement, village, city council or council of the 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 individuals 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 large families or adoptive families in which five or more children are raised.
At the same time, temporarily, for a period of the martial law on the territory of Ukraine, introduced by Decree № 64/2022 of the President of Ukraine "On introduction of the martial law in Ukraine" as of 24.02.2022, approved by the Law of Ukraine № 2102-IX "On approval of Decree of the President of Ukraine "On introduction of the martial law in Ukraine" as of 24.02.2022, until December 31 of year in which martial law was terminated or abolished, provisions of Article 266 of the Code are applied taking into account peculiarities.
Tax on immovable property other than land plot is not calculated and paid, in particular, by individuals for:
1) residential and/or non-residential real estate located in territories of active hostilities or in territories of Ukraine temporarily occupied by the russian federation:
2021 and 2022 – for residential real estate objects, including their shares owned by individuals;
for a period from 01.03.2022 to 31.12.2022 – for non-residential real estate owned by individuals.
Starting from 01.01.2023 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 a land plot is not calculated and paid for a period from the first day of month in which date of beginning 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) residential and/or non-residential real estate objects destroyed as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of 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, information regarding destruction of which is entered in 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 – Property register);
3) damaged objects of residential and/or non-residential real estate (such as those requiring capital repair, reconstruction or restoration as a result of hostilities, acts of terrorism, sabotage caused by the armed aggression of 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, acts of terrorism, sabotage caused by the armed aggression of russian federation against Ukraine, and information regarding damage of which is entered in the Property register. Accrual of tax on immovable property other than land plot on such real estate objects is resumed starting from month following the month in which, according to the Property register, residential real estate objects were overhauled, reconstructed, restored and recognized as suitable for living;
for a period from 01.03.2022 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, acts of terrorism, sabotage, caused by the armed aggression of russian federation against Ukraine and information regarding damage of which is 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 are overhauled, reconstructed, restored and recognized as suitable for use according to the intended purpose.
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 01.01.2023 year as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of russian federation against Ukraine, tax on immovable property other than land plot is not accrued and not 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, until the first day of month following the month in which, according to data of the Property register, residential and /or non-residential real estate objects are capitally renovated, reconstructed, restored and recognized as suitable for living / for the intended purpose.
In a part of residential/non-residential real estate objects, including their shares, which as a result of hostilities, terrorist acts, sabotage caused by the armed aggression of russian federation against Ukraine, suffered minor damage, suitable for living/use for the intended purpose (respectively) and are subject to restoration through ongoing repair, settlement, village, city councils, military administrations or military-civilian administrations have a right to:
1) set rates for tax on immovable property other than land plot in amount lower than amount of tax on immovable property other than land plot established by 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 (hands over) tax notification-decision for the tax (reporting) periods of 2021 and 2022 until 31.12.2023, with exception of tax liabilities for non-residential real estate 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 being (were) ongoing or temporarily occupied by the russian federation, for which the controlling body calculates tax liability and sends (hands over) 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.
In addition, please note that in 2022 and 2023, tax notifications-decisions on payment of tax on immovable property other than land plot, calculated according to Article 266 of the Code, on immovable property located in territories of active hostilities or territories of Ukraine temporarily occupied by the russian federation, according to data of the List of territories where hostilities are (were) ongoing or temporarily occupied by the russian federation, determined according to procedure established by the Cabinet of Ministers of Ukraine, are subject to cancellation (revocation); monetary obligations and tax debt determined by the controlling body for tax on immovable property other than land plot are subject to annulment.
Tax obligations for the reporting year are paid by individuals within 60 days from the date of receiving tax notification-decision.