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 Finance Ministry proposes dramatic changes to taxation of property

The Ukrainian Ministry of Finance proposes changes to taxation of property within reform of the country's tax system by introducing a tax on all houses and apartments, as well as industrial and warehouse facilities.

UNIAN reports citing a draft Tax Code published by the ministry, Censor.NET informs.

According to the document, apartments having area over 300 square meters ​​ and residential houses ​​over 500 square meters in area will be taxed at a flat rate of UAH 25,000 per year.

In addition, the draft tax code envisages a property tax for residential properties with smaller area in the range of 0%-3% of the minimum wage for one square meter, to be determined by local councils.

Read more: Tax system must stimulate economic growth and be clear for taxpayers, Poroshenko says

In addition, the ministry proposes to cancel tax benefits to owners of industrial and warehouse facilities. The tax rate for them will be set at 3% of the minimum wage for one square meter.

As reported earlier, a new Tax Code came into force in Ukraine on January 1, 2015, according to which the property tax is levied on apartments ​​over 60 square meters in area and houses over 120 square meters in area, while the tax does not exceed 2% of the minimum wage for one square meter per year.
 
 
 
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