CALCULATION OF LAND TAX IN UKRAINE
As it was before 2020
The tax code contained specific rates and ratios depending on the population. type of land, etc. What it looked like: Consider the example tax calculation. Unrated land of 150 sq.m is in the capital.
The Tax Code provided for cases of significant population fluctuation. But since Kiev has always been and remains a millionaire city, we use the rate of 3.66 UAH. We apply the coefficient. The tax amount was: 150 sq.m x 3.66 UAH. x 3 = 1647 UAH.
Suppose a similar plot of land is in Odessa. Due to the fact that the city is classified as a resort, the tax amount will be doubled due to the application of the coefficient – 2.
The land tax is calculated in 2020
The setting of both land tax rates and regulatory monetary valuation has been delegated to the local councils. Local councils are obliged to set annually both the land tax rates, privileges on them, as well as the normative monetary valuation of land plots located on the territory of settlements.
The indexation coefficient is set annually by the State Committee on Land Consumption, depending on the consumer price increase, and if the consumer price increase does not exceed 100%, the coefficient is not recalculated. We will remind that earlier the coefficient was not recalculated at the index which does not exceed 110%.
So, to calculate the land tax it is necessary to know:
- regulatory monetary valuation of land;
- indexing factor.
Author: Nikolay Baranovskiy