The Verkhovna Rada has developed a draft law that should change the principles of real estate taxation and tax not the area, but the cost of housing.
The comparative table was published by the author of the project, Danylo Hetmantsev, a deputy from the "Servant of the People" party, who heads the Verkhovna Rada Committee on Finance, Tax and Customs Policy. The actual text of the project is not yet available.
How do we currently pay taxes on housing
Changes to the Tax Code adopted in 2013 are currently in force in Ukraine. According to them, home owners must pay a tax, which is calculated by the number of "overtime" square meters. Yes, 60 square meters for an apartment and 120 square meters for a house are taxable. For each "extra" meter, the owner must pay up to 1,5% of the minimum wage, i.e. 75 hryvnias per square meter. At the same time, the majority of home owners do not pay this tax, because some of the real estate objects have not yet been entered into the State Register of Real Property Rights.
The deputy believes that now the burden on taxpayers is the same, regardless of the quality of their housing, and this is unfair. For example, the owner of an apartment with an area of 70 square meters in Khreshchatyk and the owner of an apartment in Troeshchyna with the same area must pay the same 1,5% of the minimum wage, i.e. 750 hryvnias per year.
Read also: How to draw up a contract for renting an apartment: the main nuances.
What is proposed in the new draft law
In the new draft of the law, it is assumed that the tax will have to be paid not for the area, but for the cost of housing. And the rate will not be tied to the minimum wage. The size of the tax amount will be determined by local self-government bodies, but the maximum rate will be 0,2% of the appraised value of the apartment or house. Thus, the annual tax on an apartment with an estimated value of 1,5 million hryvnias will be 3000 hryvnias.
Read also: TOP real estate agencies.
This bill would eliminate property tax exemptions, except for pensioners, the disabled, war and labor veterans, minors and the disabled. But the benefits will remain on the condition that they have no more than one real estate object and its estimated value is not higher than the specified limit: for example, for an apartment in a city of millionaires, it is 300 "minimals", i.e. 1,5 million hryvnias. How to estimate the cost of housing? The draft law proposes to organize a mass assessment once every five years. Was the publication interesting and useful? Subscribe to our updatesreal estate blog and receive the latest publications from the real estate agency THE Capital.
