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MPs propose not to reimburse already paid taxes on land and real estate in the area of ATO

Accrued and paid during the period of the ATO of the amount of the tax on real property and land located on the temporarily uncontrolled by the Ukrainian authorities of the territory of Donetsk and Lugansk regions, as well as on the frontline, should not be subject to refund to the accounts of taxpayers or be directed to repay the tax debt for other taxes and levies.

According to information on the website of the Verkhovna Rada, the corresponding norm is contained in was registered on 17 Mar bill No. 6210 on amendments to the Tax code regarding clarification of certain provisions and address inconsistencies encountered in the adoption of the law “On amendments to the Tax code of Ukraine concerning improvement of investment climate in Ukraine” №1797. The initiators of the draft law are the head of the Verkhovna Rada Committee on taxation and customs policy Nina Southerner, MPs Maxim Kuryachii, Olexander Dolzhenkov, Oleg Krysin, Dmitry Svyatash, Robert gorvat .

According to the explanatory note to the document, because taxes on land and real estate have formed a profitable part of local budgets of Donetsk and Lugansk regions, the source of their returns must be the local budgets. However, there is neither sufficient financial resources nor the necessary subsidies from the state budget of Ukraine.

“In fact, after the adoption of the law No. 1797 the local budgets of Donetsk and Lugansk regions without the corresponding financial resources are left with the problem of the return of local property tax taxpayers for the period from 14 April 2014, one-on-one” – explain the authors of the bill.

In addition it is noted that the bill fixes a technical error, according to which stopped the rule about establishment of the rate of personal income tax at the rate of 9% for income in the form of dividends on shares and/or investment certificates, corporate rights accrued by non-residents, joint investment institutions and entities that are not payers of the profit tax.

As reported, the Verkhovna Rada has canceled the payment of taxes on real property and land located on the temporarily uncontrolled by the Ukrainian authorities of the territory of Donetsk and Lugansk regions, as well as on the frontline. However, establishing that the accrued and paid during the period of the ATO of the amount of land rent is considered excessively paid monetary liabilities and refundable.

The relevant rules provided by the law “On amendments to the Tax code of Ukraine concerning improvement of investment climate in Ukraine” (bill No. 5368 of November 7, 2016).

“Residential and non-residential property, located on the territory of settlements in the temporarily occupied territory and/or site settlements, which are placed on the line of contact, and which are owned by individuals and legal entities are not subject to taxation tax on real property other than land… from 14 April 2014 until 31 December of the year in which completed the antiterrorist operation (ATO)”, – was noted in the comparative table to the draft law.

In addition, for the period from 14 APR 2014 until 31 December of the year the end of the ATO, the law eliminates the accrual and payment of land tax, rent for land plots of state and communal property, which are located in the temporarily occupied territory and/or line of contact and are owned and/or used (including under a lease) of natural persons or legal entities.

At the same time, the law establishes that in the period from 14 April 2014 until 31 December of the year of completion of the ATO land located in the temporarily occupied territory and/or line of contact, and owned and/or used by single tax payers of the fourth group, are not objects of taxation as a single tax.

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