If the income obtained from sale of agricultural products grown, fattened, caught, gathered, made, manufactured, treated and/or processed directly by a natural person on the said land plots, the size of which does not exceed 2 hectares, it is not declared, and individual income tax is not paid.
If the size of land plots exceeds 2 hectares, the income from sale of agricultural products is subject to taxation on general grounds. To sell agricultural products (except animal husbandry products), its owner has to file a copy of the certificate conforming availability of the land plots to a tax agent, as set out in the second and third clauses of this subparagraph. The original certificate is kept by a holder of agricultural products within the limitation period for claims starting from the certificate expiry date. The certificate is issued by a village, borough or city council at the place of tax registration (place of residence) of a taxpayer within five working days since the date of receipt of a written application for issue of the certificate.
The income obtained from sale of own animal husbandry products of groups 1 - 5, 15, 16 and 41 listed in the Ukrainian classification of goods in international trade, is not taxable, if the total annual amount exceeds 100 minimum salaries (in 2014 – 1218 hryvnias). The said natural persons can sell animal products without obtaining the certificate of availability of land plots.
If the amount of the income exceeds 121 800 hryvnias, a natural person is liable to submit a certificate to prove independent animal breeding, raising, and fattening; such certificate can be issued in a free form by a village, borough or city council at the place of tax registration (place of residence) of the owner of the animal products. If the certificate confirms that the products sold were the result of animal breeding and raising performed directly by the taxpayer, the income exceeding 121 800 hryvnias is liable to taxation. If such taxpayer does not confirm being engaged in independent animal breeding and raising, the income from sale of animal products is liable to taxation on general grounds.
The form of certificate conforming availability of land plots possessed by an individual person as well as the procedure for its issue (form No.3ДФ) was approved by the Ministry of Revenue & Duties of Ukraine on 17.01.2014, Resolution No.32. The procedure sets out that this certificate is to be issued free of charge, for 5 years. It can be issued by a village, borough or city council at the place of tax registration (place of residence) of the taxpayer. The said above document is to be issued within 5 working days from the date of receipt of the written application for issue of the certificate.
