Cabinet initiates taxation of commercial real estate in Ukraine

17:15, 24.12.2014 1 min read

The Cabinet of Ministers of Ukraine, as part of its transfer of power over tax on immovable, non-land property to local authorities and budgets, has proposed designating both non-residential and residential property as taxable.

The initiative is contained in government bill No. 1578 on amendments to the Tax Code of Ukraine and certain laws of Ukraine (on tax reform) dated December 22, 2014, the text of which has been posted on the website of the Verkhovna Rada.

The bill, inter alia, proposes to abolish preferential taxation for housing dependent on a total area of 120-370 square meters, and delegating powers to local authorities to independently set tax breaks, including the non-taxable area of the properties.

According to the bill, the government proposes removing garden summer houses from the categories of non-taxable residential and non-residential property as well.

The bill also includes residential properties that are used by small and medium businesses in the category of non-taxable properties.