Taking into account the dissemination in the media of reports of the State Tax Service authorities about the payment of property tax by individuals in 2021, we draw attention to the following.
- Who pays a property tax:
Property taxpayers are individuals, including non-residents (persons carrying out economic activities in Ukraine through a permanent mission and/or receiving income from a source of origin from Ukraine) who are owners of residential or non-residential property.
If the minor children are property owners, the tax is paid by their parents or guardians.
- Cases when you have to pay a property tax:
The property tax should be paid if:
the area of the apartment is more than 60 sq.m.,
the area of a dwelling house is more than 120 sq.m.,
area of various types of real estate objects is more than 180 sq.m.
You will have to pay tax for each square meter above this rate. For example, if the total area of your apartment is 72 sq.m., then you will have to pay a tax for 12 sq.m.
In addition, owners of an apartment with an area of more than 300 sq. m. or a house with an area of more than 500 sq. m. will have to pay 25 thousand UAH.
- Exclusions and the payment procedure:
Not everyone has to pay property tax, there are exceptions: in particular, large families, orphans, disabled children, kindergartens, schools, religious organizations, members of the operations of joint forces/anti-terrorist operation and their families, public organizations of disabled people.
Tax rates are set by decision of the local councils: village, settlement, city councils and councils of the amalgamated territorial communities. However, they must not exceed 1.5 per cent (%) of the minimum wage, which means the maximum rate may not exceed UAH 70.85 UAH per sq. m.
Тax notices-decisions (TND) on the payment of the amount of tax on the objects of residential and /or non-residential properties are sent (given) to the taxpayer by the controlling authority at the place of his tax address before 1 July 2021. The tax should be paid within 60 days from the date of delivery of the tax notice-decision.
If you have not received a notice-decision due to a discrepancy of the tax address with the actual place of residence or for other reasons, you should contact the tax authority at the place of registration to pay the tax due.
- Fines for late payment of tax:
In case of delay in payment for up to 30 days, the amount of the fine is 5% of the repaid amount of tax debt. In case of delay of payment for more than 30 days, the amount of the fine is 10% of the repaid amount of tax debt.
It will be recalled that these new fines (instead of 10% and 20% respectively) were introduced by the Law “On amendments to the Tax Code of Ukraine regarding improvement of tax administration, elimination of technical and logical inconsistencies in tax legislation” dated 16.01.2020 No. 466-IX and should be applied from January 1, 2021.