Cabinet of Ministers of Ukraine : Local budgets to gain UAH 75 mln from immovable property tax in 2013

From January 1, 2013 a norm of Tax Code has come in force according to which immovable property of physical and juridical persons (including non-residents) will be taxed. Buildings of accommodation fund including residential buildings, accessory buildings, flats, cottages will undergo taxation.

The tax service specialists assure that overwhelming majority of Ukrainians will not suffer additional financial expenses from introduction of the new tax. As the Tax Code envisages a series of benefits for physical persons.However, if a person owns several property objects the benefit will concern only one of the objects, the others will undergo taxation.

Analysts of the tax service calculated that owing to the new tax local budgets will receive around 75 million hryvnyasin 2013 already. Today there are 28 millions of housing objects that will be taxed.

The tax will be paid once a year.

The following objects will not be taxed: objects in the property of the state or local communities; property located in an alienation zone or implicit evacuation zone; building of children's homes of family type; country houses but only one such object per one tax payer; hostels; objects in property of multiple children families and foster homes with three and more adopted kids but no more than one object per one such family.

It should be noted that Ministry of Incomes and Fees of Ukraine was created by reorganization of the State Tax Service of Ukraine and the State Customs Service of Ukraine by a Decree of the President of Ukraine of 24.12.2012.