Real Estate Tax 2015

From 1 January 2015, as a result of the tax reform, substantial changes to the Tax Code on real estate tax have been made.
Firstly, the tax on real property other than land is a part of property tax according to Art. 265 of Tax Code, although, in fact, it is a special type of local tax with its own specific calculation, payment rates and benefits.
Secondly, due to changes in tax privileges, the tax base has quantitatively increased. The real estate tax for 2015, according to legislation, must be paid by citizens who own apartments, with total area more than 60 square meters, or houses with total area more than 120 square meters, in the case of possession of different objects (and apartments and houses) – more than 180 sq.m. In other words, tax is charged only to the area that exceeds the above mentioned.
Privileges are not applicable if the apartment or house is used by owners for profit (such as rent).
It should be noted that in case of ownership of number of real estate – areas are added up, if the house or apartment belongs on the right of common property – the tax base is determined in proportion to the shares.
Real estate tax rates are determined by local councils within the limits established by the Tax Code, and it cannot exceed 2 per cent of the minimum wage on January 1 of the reporting year for 1 square meter of real estate.
For consultation and qualified legal assistance on the taxation of real estate, please contact:
Senior Associate Natalia Vasylechko:
Tel.: +38 096 00 20 100

Real Estate Tax 2015
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A new law on virtual assets: the picture is formed, but without details. On September 8, 2021, the Verkhovna Rada has finally adopted the long-awaited law "On Virtual Assets", which clarified many ambiguous points. This is especially true for the status of cryptocurrency and the rules of its circulation in the country. Let`s take a closer look at novelties. An ambiguous term Let's start with what the legislator actually means by "virtual assets". There are the following features:  they are an intangible good (cannot be represented on tangible media)  fall under the list of objects of civil rights (that is, they can be owned and be disposed of)  represent an electronic form of a set of data (essentially, they are blocks of information put in order);  the existence and circulation of assets are due to software tools (specific electronic environment). From these features we can draw the following conclusion: virtual assets are not limited to cryptocurrency. Digital currency is part of the concept, but other instruments, such as tokens, NFTs, or even in-game items, fall under the definition. Actually, the actual existence of most digital products, having a certain value, is due to the software environment (ecosystem), either it is blockchain technology, a trading platform, or an online game server. It should be noted that the attempt to define virtual assets was already made in the adopted Law of Ukraine in counteracting money laundering. In this act, they understand it as digital means of payment, which goes against the new definition. As a result, there are now two different explanations for virtual assets, which causes significant confusion not only in regulation but also in interpretation. It is definitely necessary to expect clarifications from competent state bodies. Let's return to the new law. Its application covers legal relations in which the "Ukrainian element" is present:  provider or recipient of services represented in Ukraine;  an agreement according to which the turnover of virtual assets is carried out in accordance with Ukrainian legislation;  the acquirer of assets (or both counterparties) is a resident(s) of Ukraine. The law also introduces an interesting division of all virtual assets into two groups: secured and unsecured. Here again, there is a problem of interpretation. The first category includes products exchanged for (state) currency, the second category includes instruments that can be exchanged only for other digital assets. There is an alternative opinion: that the turnover of secured assets is supported by real goods (money or other property), while unsecured ones are not supported by anything. The latter interpretation is the most credible, as the new law stipulates that virtual assets are NOT means of payment. 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20/01/2022
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