Anatoliy Perepelchenko on the pension fee paid when buying real estate

Anatoliy Perepelchenko on the pension fee paid when buying real estate

Author

Perepelchenko Anatolii

Paragraph 9 of Part 1 of Art. 1 of the Law of Ukraine "On fees for mandatory state pension insurance" payers of fees for mandatory state pension insurance are enterprises, institutions and organizations regardless of ownership and individuals who purchase real estate, except for state enterprises, institutions and organizations who purchase real estate at the expense of budget funds, institutions and organizations of foreign states, enjoying immunities and privileges in accordance with the laws and international treaties of Ukraine, the consent of which is given by the Verkhovna Rada of Ukraine, as well as citizens who purchase housing and queues for housing or buying a home for the first time.

Real estate is a house or part thereof, an apartment, a garden house, a dacha, a garage, another permanently located building, as well as another object that falls under the definition of group 3 fixed assets and other non-current assets in accordance with the Tax Code of Ukraine.

In accordance with paragraph 8 of Art. 2 of the Law of Ukraine "On the fee for mandatory state pension insurance" the object of taxation for taxpayers defined in paragraph 9 of Article 1 of this Law is the value of real estate specified in the contract of sale of such property.

According to item 15-1 of the Procedure for payment of the fee for obligatory state pension insurance on certain types of business operations, approved by the resolution of the Cabinet of Ministers of Ukraine of November 3, 1998 №1740 (further on the text - the Procedure №1740) fee for obligatory state pension insurance for real estate purchase and sale transactions is paid by enterprises, institutions, organizations, regardless of ownership and individuals who purchase real estate, in the amount of 1 percent of the value of real estate specified in the contract of sale of such property, except for state enterprises , institutions and organizations that acquire real estate at the expense of budget funds, institutions and organizations of foreign states that enjoy immunities and privileges in accordance with the laws and international treaties of Ukraine, the consent of which is given by the Verkhovna Rada of Ukraine, as well as citizens who acquire housing and are in line to receive housing or purchase housing for the first time.

Clause 15-3 of the Procedure №1740 stipulates that notarization or registration of real estate purchase and sale agreements on the stock exchange is carried out in the presence of documentary proof of payment of the fee for mandatory state pension insurance on real estate purchase and sale transactions.