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: 6752
Novelties of tax legislation: farming enterprises and land plot taxation

Tags:

budget budget analytics Ya.Kazyuk

Source:

Share the news:

Read more:
E3b54e2265773b9dd24e8c3d10630784

22 February 2019

Rural primary healthcare network includes 4223...

The country is implementing decentralisation that strengths hromadas, promotes rural development and provides a new...

D990700c4733ef6e86adcfd86a3abfd3

22 February 2019

Financial decentralisation: experts told about...

Whatever the skeptics of local self-government reform say, financial decentralisation results in particular indicate...

A0e08b8576637447a58d9739328fae49

22 February 2019

ATTENTION! COMPETITION on selection of AHs for...

The Western Ukrainian Resource Centre announces a call for selection of amalgamated hromadas to participate in the...