Property tax in 2023: how to pay it during the war and who can not do it

This year, property tax will be levied under new rules. In particular, the owners of houses and apartments located in the temporarily occupied territories or in the war zone are exempted from it.

Homeowners were given benefits, but not told to whom

Property tax in 2023 must still be paid for the previous year. Until July 1, homeowners must receive a message from the tax office, how much they must pay this time. However, due to martial law, the rules were changed: amendments were made to the Tax Code on the specifics of immovable property tax collection for 2021 and 2022.

Under the new rules, owners of housing located in the territories of hostilities or in the temporarily occupied territories are exempt from paying the tax. But it is still unknown who was exempted from paying the tax. The reason is the lack of relevant regulations.

The procedure for recognizing real estate as uninhabitable due to hostilities must be approved by the government, but the document has not yet appeared.

Also, the Cabinet of Ministers, by law, must determine the list of zones of active hostilities and territories temporarily not controlled by Ukraine. At the same time, the government transferred this right (Resolution No. 1364) to the relevant department - the Ministry for the Reintegration of the Temporarily Occupied Territories, which fulfilled the task of the Cabinet of Ministers.

“Since the law contains a clear indication that such a list should be determined by the Cabinet of Ministers, the tax authorities stated that such a list cannot be used for tax purposes,” explained Artur Mriglod, an associate in the tax law practice of MORIS.

Consequently, the issue of applying the real estate tax exemption remains unresolved. The tax authorities did not explain how the payers should act in this situation.

Changes in the form of the declaration

This year, a new form of declaration for property tax has been introduced. It is supplemented with information about:

location of objects of taxation;
use of tax benefits in the reporting period;
detailing the amount of tax liability accrued to increase, in accordance with paragraph 50.4 of Art. 50 of the Tax Code of Ukraine.

You can view the new declaration form here. To fill out the document, you should contact the tax office at the place of your registration. They will help you fill out the forms and can provide additional advice.
Who has to pay tax

The tax must be paid by everyone who owns in Ukraine:

apartments with a total area of more than 60 sq. m,
residential houses - more than 120 sq. m,
different types of residential real estate, that is, both an apartment and a house - more than 180 sq. m.

The tax is charged on each square meter of area that exceeds the maximum size of the area exempted from taxation. Another rule: if the area of ​​the apartment is more than 300 square meters. m, or the area of the house exceeds 600 sq. m, the tax will be increased by 25 thousand UAH.

What is the tax rate and how to calculate it

The amount of tax per square meter is set by the local authorities, although it cannot exceed 1.5% of the minimum wage at the beginning of the year preceding the year in which the tax decision notice is received.

The percentage of the "minimum salary" is 97.5 hryvnia. That is, in different regions of Ukraine, tax rates may be different, but they have no right to collect more than 97.5 hryvnia per square meter from Ukrainians.

The calculation of the amount of taxes will be carried out according to the following formula:

(total area - preferential area on which tax is not charged) x tax rate = tax amount

Here is an example: the total area of the apartment is 100 square meters. m; the area on which the tax is not charged is 60 sq. m; tax rate - 1.5% (for convenience, we will take the maximum possible); the minimum wage at the beginning of 2022 is UAH 6,500.

From 100 sq. m subtract 60 sq. m - we get 40 square meters. m. It is for these meters that you need to pay tax. Next, we multiply UAH 6,500 by 1.5% and get UAH 97.5 - this is the tax rate. Then 40 sq. m multiply by UAH 97.5 and get the amount of tax to pay in the amount of UAH 3,900.

But if the apartment is divided between family members, for example, between husband and wife for 50 square meters, then you do not need to pay tax.
When to pay

For private owners of real estate, the tax must be paid within 60 days from the date of delivery of the tax notice-decision, for legal entities - in advance contributions quarterly by the 30th day of the month following the reporting quarter, which are reflected in the annual tax return.

Liability for non-payment of tax

There is a penalty for late payment of property tax. According to MORIS lawyers, if the payment of tax is delayed up to 30 calendar days, the amount of the fine is 5% of the amount of the debt, and if the delay is more than 30 calendar days - 10%.

Experts point out that such a fine is imposed only after the payment of the monetary obligation. However, the calculation of the amount of the fine is not the responsibility of the taxpayer.

“The State Tax Service should impose a fine based on the result of the audit with the sending of a tax notice-decision. If the STS can prove that the taxpayer deliberately fails to pay or failed to pay the amount of the monetary obligation on time, or if the taxpayer's act led to a delay in tax payment for a period of more than 90 calendar days, or if the payer repeatedly delays the payment of tax (not necessarily real estate tax) - the amount the fine is increasing,” says Victor Ruban, junior lawyer at MORIS tax law practice.

Also, the tax legislation provides for the calculation of penalties. For individuals, such accrual starts from the first business day after the expiration of the tax payment deadline specified in the tax notice.

For legal entities - 90 days after the tax payment deadline has expired.

However, experts note: if the tax is not paid due to martial law or a state of emergency, no penalty is charged, and the accrued amount is cancelled.