Luxury tax

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Yasinskiy Yevhen

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An expert in the practice of tax law, specializes in the protection of rights in court, corporate law.

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Luxury tax

Reading time: 4 min.

The luxury tax includes some types of property taxes, the rates of which are regulated by local self-government bodies, unless otherwise provided for in specific cases by the current Tax Code of Ukraine. The money that a person pays as part of this tax is directed to local budgets.

What is this tax paid for and who should pay it?

Conventionally, the luxury tax can be divided into 2 large groups:

  • transport tax (Article 267 of the Tax Code of Ukraine);
  • tax on real estate, except for land (Article 266 of the Tax Code of Ukraine).

 

This tax is paid by the owners of expensive and fairly new cars, if we are talking about the transport tax. It does not apply to trucks. It is also important to pay attention to the month of the car's release, if it is also indicated in the documents. The fact is that the tax is provided for those cars that are less than 5 years old. Accordingly, if the month is known, the tax payment term will be calculated until the month when the car will be 5 years old.

As for the luxury tax in the case of real estate, it depends on the local councils. 60 days are allotted for tax payment from the moment when the payer receives the relevant notification.

When we talk about filling out declarations, they refer to cases where such expensive property is on the balance sheet, primarily of legal entities. As for natural persons, the tax administration performs the calculation automatically. You can see the tax payment notice in the Electronic Cabinet.

Luxury tax in numbers

The Ministry of Economy of Ukraine publishes information on car brands and models, indicating the year of manufacture, cylinder volume and type of fuel, which are subject to transport tax. Such data are published regularly. For example, in 2024 there are 225 car models in the list. The annual tax rate for one such car is 25,000 hryvnias.

Transport tax is paid by the owners of cars up to 5 years old, the value of which is higher than 375 minimum wages. The funds go to the local budget. As for real estate, a tax of 25,000 hryvnias per year is provided for apartments over 300 square meters and houses over 500 square meters owned by one owner.

Above we talked about the cases when the tax rate is fixed. However, there are also situations when it is not about a fixed rate and much smaller amounts. These are situations when one owner owns an apartment of 60 square meters or a house of 120 square meters. Here, the tax rate is determined by local self-government bodies.

If this tax is not paid, there will be legal and financial consequences in the form of penalties. So it's better to fulfill your tax obligations.

 

How can we help?

The team of the "Prikhodko&Partners" law office provides its clients with various types of legal assistance. The most common and frequently requested services are consulting and legal support. Regarding the first, we will answer all your questions on the topic of the luxury tax. You will not have to deal with the legal regulations on your own. As for the second, it is about support and representation in interaction with authorized state bodies. In this case, DPS is meant. So apply. We will help you efficiently and effectively.

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