DPS in Chernivtsi region remind that according to Law of Ukraine dated November 30, 2021 No. 1914 “On Amendments to the Tax Code of Ukraine and other legislative acts of Ukraine on ensuring the balance of budget revenues” for taxpayers – natural persons who own and/or use (rental, sublease, emphyteussis, permanent use) are land plots classified as agricultural land, the concept of minimum tax liability (hereinafter – MPZ) has been introduced.
Payer in part of the MPZ is a resident who owns and/or uses (rents (subleases), under the terms of emphytheusis, permanently uses) land plots classified as agricultural land (para. 162.1.1. 162 of the Tax Code of the country.”
Subparagraph 170.14.3 of Article 170.14 170 of the Code of Civil Procedure it is established that the determination of the general income tax for natural persons who are not registered as natural persons – entrepreneurs is carried out by the controlling authorities at the tax address of such persons by July 1 of the year following the reporting year.
Payers tax to the budget is paid only the positive value of the difference between the amount of the total MPZ and the amount of taxes, fees, and payments paid during the tax (reporting) year, related to the production and sale of own agricultural products and/or the ownership and/or use (rent, sublease, emphytheusis, permanent use) of land plots classified as agricultural land.
To total taxes, duties, payments paid during the tax (reporting) year for the taxpayer – an individual include: tax on the income of individuals and the military levy on the income from the sale of own agricultural products; land tax for land plots classified as agricultural land (paragraph 170.14.5 170.14 of Art. 170 of the Civil Code).
The calculated amount of MPZ is determined by the formulas established by Corresponding to p. Chapter 67 ХХ “Transitional Provisions” of the PKU temporarily, for the calculation of the MPZ for the 2022 and 2023 tax (reporting) years, the coefficient is used with a value of 0.04.
Minimal tax liability is not determined for:
land plots of land used by dacha (cottage building) and horticultural (gardening) cooperatives (societies), as well as acquired ownership/use by members of these cooperatives (societies) as a result of privatization (purchase/sale, lease) within the boundaries of lands that belonged to these cooperatives (societies) under the right of collective ownership or were in their permanent use; reserve lands; unclaimed land shares (shares), the managers of which are local self-government bodies, except for such land shares (shares) leased by local self-government bodies; land plots of exclusion and unconditional (mandatory) resettlement zones that were radioactively contaminated as a result of the Chernobyl disaster; of land plots classified as agricultural land, which belong to natural persons with the right of ownership and/or with the right of use and as of January 1, 2022, were located within the boundaries of settlements.
Source: “Debit-Credit“