What happened? From January 1, the tax on agricultural land came into force in Ukraine. The minimum tax liability (MTL) was approved in November 2021, and the payment of the fee begins in 2023.
Details. This year, the minimum tax liability will be paid for 2022. The MTL is charged for both the use and ownership of the land plot.
The land tax will apply to owners and users of land located outside settlements, as well as within them. However, land within settlements will be taxed only if its size is more than 0.5 hectares.
The minimum tax liability will not be accrued and paid for the years 2022 and 2023 for the lands where military operations are underway or which are in the temporarily occupied territories.
The MTL includes land tax, tax on the revenues from the sale of crops (grown on this land), income tax, military tax on the salaries of employees.
On average, the MTL will be 1500 UAH per hectare. In the first two years, it will be somewhat less, as it will be applied at the level of 4% instead of 5%. This is, averagely, about 1000 UAH per hectare. These figures are conditional, as they are calculated on the basis of an average normative monetary valuation.
Individuals who are not registered as private entrepreneurs will receive a tax notice with a detailed calculation of the annual tax liability. Such notifications will be sent from January 1 to July 1, 2023. The tax will not be paid by those individuals who do not receive the relevant tax notice within the specified period time from the controlling authority.