In Ukraine, from July 1, the parties to a transaction for the purchase of a plot of land will have to pay 5% of the tax on the income of natural persons and 1,5% of the military levy on the value of the plot specified in the contract. This was reported by the Ministry of Justice on Wednesday, June 30.
"After the lifting of the so-called moratorium on the alienation of plots for agricultural use, upon certification of the agreement on the alienation of such a plot of land, it will be necessary to pay: tax on the income of individuals at the rate of 5% of the price specified in the contract of sale; the military levy in the amount of 1,5%, and even before the notarization of the land alienation agreement," said the message.
The basic calculation value for taxation will be the price specified in the sales contract, which cannot be lower than the estimated value of the land calculated by the authorized body.
At the same time, the algorithm of taxation of land operations provides for a number of benefits. In particular, the owners of agricultural plots of land and land shares, which were received in the order of free transfer, are exempted from taxation.
In addition, benefits can be used under certain conditions and only once per hour by persons who received such plots during the privatization process.
Earlier, the Cabinet of Ministers announced that this year there will be no effect from the land market. Until the end of this year, there will be only the so-called preparatory period, and the economic effect will be minimal, according to Minagroprod.
Prime Minister Denys Shmyhal also explained how the land market will be controlled. The Cabinet of Ministers and the Verkhovna Rada introduced a number of "safeguards" against abuse in the land market, the Prime Minister assured.
