By KYIV. Jan 4 (Interfax-Ukraine) – From January 1, 2023, agricultural producers in Ukraine are obliged to pay the minimum tax liability – a tax on agricultural land approved in November 2021, and the payment of which begins in 2023 for 2022.
As the Telegram channel of Agro-Innovative Club (which unites farmers, developers of innovative solutions and fintech companies) recalled, the new tax applies to owners and users of land located outside settlements, and for land within settlements it applied only if they the size exceeds 0.5 ha.
The minimum tax liability is charged for the use and ownership of a land plot, regardless of whether agricultural activities were carried out on it.
The tax will not be charged and paid for 2022 and 2023 for the lands where hostilities are taking place or they are recognized by the Cabinet of Ministers of Ukraine as temporarily occupied territories.
On average, the minimum tax liability will be about UAH 1,500 per ha a year, and will consist of the land tax itself, tax on income from the sale of crops grown on this plot, tax on agrarian income, and a tax on the wages of employees. At the same time, in the first two years of the tax, it will average about UAH 1,000 per ha, since it will be charged at a rate of 4%, not 5%.
Individuals not registered as self-employed individuals will receive a tax notice detailing their annual tax liability from January 1 to July 1, 2023. At the same time, the minimum tax liability will not be paid by those individuals who do not receive the relevant tax notice from the control authority within a certain time frame.
As reported, the Ministry for the Reintegration of the Temporarily Occupied Territories of Ukraine at the end of December 2022 approved a list of territories temporarily occupied by the Russian Federation in which hostilities are or have been conducted, which will allow businesses operating in these regions to receive a number of tax benefits, including not paying the minimum tax liability.
