After the moratorium on the alienation of farmland is lifted on July 1, the parties to the transaction for the purchase of a land plot will need to pay 5% personal income tax and 1.5% military duty. Taxes and fees will be calculated from the cost of the plot specified in the sale and purchase agreement, the press service of the Ministry of Justice reports.
The military tax shall be paid even before the moment of notarization of the land alienation agreement. The basic calculated value for taxation of transactions for the purchase of land will be the price specified in the purchase and sale agreement, which cannot be lower than the assessed value of the land calculated by the authorized body.
According to the ministry, the legislative algorithm for taxation of land transactions also provides for a number of benefits.
“The owners of agricultural land plots and land shares received as a gratuitous transfer in accordance with Article 121 of the Land Code of Ukraine are exempted from taxation. Benefits, under certain conditions and only once a year, can also be used by persons who received such plots in the course of privatization,” the ministry said.
Meanwhile, Ukrainian Prime Minister Denys Shmygal stated that the moratorium on the land market will be lifted on July 1.
According to Shmygal, there is no successful country where such a moratorium exists.