By the end of summer, Ukrainians must pay property tax, which is calculated based on the number of ‘extra’ square meters of housing. The local council decides on the tax rate, and these funds go to the local budget. However, the maximum rate is set by the Tax Code — it cannot exceed 1.5% of the minimum wage established for January of the previous year.
This is reported by Finway
Tax rates in different cities
In many cities of Ukraine, the maximum rate is applied. For example, in Kyiv, it is 1.5% of the minimum wage, which amounts to 106.5 UAH for each ‘extra’ square meter. In comparison, in Kropyvnytskyi, the rate is only 0.5% of the minimum wage, or 35.5 UAH per square meter.
Payment is required only for the area that exceeds the legally established norm. These norms for housing are as follows:
- for apartments (regardless of the number) — 60 m²;
- for houses — 120 m²;
- if both a house and an apartment are owned — 180 m².
“Tax notifications regarding the payment of the amount(s) of property tax, other than land tax, and the relevant payment details specified in the first paragraph of subparagraph 266.7.2 of paragraph 266.7 of Article 266 of the Tax Code of Ukraine, sent to the taxpayer, must contain information regarding each of the residential and/or non-residential properties, including, but not limited to, the address of the location of the residential and/or non-residential property, its area, rates, and the exemptions provided to individuals for tax payment” – states a message from the State Tax Service in one of the regions.
Calculation and consequences of non-payment
If a property owner has an apartment with an area of 100 m², then 40 m² above the norm is subject to tax. At the highest allowed rate in Kyiv, the tax amount can reach 4260 UAH, but the exact amount depends on the decision of the local authorities.
In case of non-payment, the debt will remain with the owner until it is fully settled. This may lead to additional problems, such as losing the right to be on a single tax system or an increase in the debt amount due to fines. Oleksandra Tomashevska emphasizes that tax obligations do not disappear on their own and can complicate the owner’s financial situation.
It is important to know that even if the taxpayer did not receive the tax notification personally due to absence at the registered address or refusal to accept the letter, it is considered delivered from the date indicated by the postal service in the delivery notification.