Novelties of tax legislation: farming enterprises and land plot taxation

On 10 August President of Ukraine signed the Law No. 2497 “On Amendments to the Tax Code of Ukraine and Certain Laws of Ukraine on Stimulation of the Establishment and Activities of Family Farming Enterprises” (draft law No. 6490-d).

In particular, the law encourages local self-government bodies to control the compilation of land lease agreements. It is assumed that the personal income tax from land plots’ (shares) rent is enrolled to local budgets at the place of location of land plots.

Tax sums for land plot lease (sublease, emphyteusis) by natural persons are paid to the corresponding budget at the place of location of such leased property (or the property in sublease, emphyteusis).

Now, local authorities have the opportunity to increase their own revenues and use land more efficiently.

Another innovation is the introduction of a land tax for forest land.

Thus, local self-government bodies received an additional source of revenues in the form of a forest land tax.

In addition, Law No. 2497 grants the right to establish family-owned farming enterprises with acquisition of an individual entrepreneur status.

The law also envisages privileged procedure for paying a single social contribution for all members of the farming enterprise.

The materials were prepared by the experts of the Financial Monitoring Group of the Central Reform Office under MinRegion (with the support of the U-LEAD with Europe Programme):

  • Yanina Kazyuk, financial decentralisation coordinator
  • Viktor Ventsel, financial monitoring expert

The full version is available in Ukrainian – please click HERE

 

14.08.2018 - 13:13 | Views: 10149
Novelties of tax legislation: farming enterprises and land plot taxation

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budget budget analytics Ya.Kazyuk Viktor Ventsel

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