Starting January 1, 2015, the legislative norms set out in Law of Ukraine № 71-VІІІ, On Changes to the Tax Code of Ukraine and Some Enactments (in relation to the tax reform) come into force.

The said above legislative norms have changed the procedure for property taxation.

From now on, residential and non-residential property, including its part, is subject to taxation.

The property tax base is the total floor area of residential and non-residential property.

For natural persons, the property tax is calculated by the controlling authority (the National Fiscal Service) based on the data from the National Registry of Real Property Rights, with issuing the tax form free of charge by the real estate registration authorities and/or upon submission of the required original documents by the taxpayer, including title deeds.

The village, borough or town councils have the power to set tax rates depending on the location (zones) and types of property, in the amount not exceeding 2 percent of the minimum wage set out in the legislation as of January 1 of the tax year, upon the base cost of 1 square meter. The minimum wage as of 01.01.15 is 1218 hryvnias; as of 01.01.14 is 1218 hryvnias)

Eligibility to property tax credits envisage that the tax base may be reduced, with full or partial tax relief on real estate.

In particular, the tax base can be reduced for:

• apartments/flats irrespective of their number - floor area of 60 square meters;

• residential building/buildings irrespective of their number - floor area of 120 square meters;

• for different types of residential property, including its part (if the taxpayer simultaneously possesses apartments/flats and residential building/buildings, including their parts) - floor area of 180 square meters.

The tax relief is given once in every accounting period (tax year).

It is worth noting that the real estate requirements set out by the Generalized Tax Consultation are applicable to the process of calculating and paying taxes on property, other than the land plot, in 2015, as approved by the resolution of the Ministry of Revenue and Duties of Ukraine passed on 25.04.14, under No.263.

In accordance with the Generalized Tax Consultation and paragraph 18, subchapter 10, chapter XX  titled “Transitional Provisions”, of the Tax Code of Ukraine, the levy in 2015will be charged on the immovable property, other than the land plot, possessed by natural persons, for the base period of 2014, which will be calculated based on the residential floor area of the residential property, including its parts, for the period from 01.01.2014 to 31.03.2014 (inclusive) and the total floor area of the residential property, including its parts, from 01.04.2014 to 31.12.2014 (inclusive), at the rates and taking into consideration the tax reliefs used in 2014.