The Law of Ukraine
On Land Tax
Date of Entry into Force:
July 1, 1992
The Law of Ukraine “On Land Tax” determines the amount and procedure of payment for land resources use, as well as directions of use of funds that came from land tax payment, responsibility of tax payers and control over accuracy of land tax calculation and levy.
It is established that land use in Ukraine is paid. Payment for land, according to the Law, shall be taken in a form of land tax or rent payment. Pursuant to the Law, land tax shall be imposed on land plots which are in private or collective ownership, in permanent or temporary use. Land tax is introduced with the purpose to form sources of funds to finance useful for society measures. It is necessary to increase effectiveness of managing relations in the field of land use.
The Law establishes provisions according to which rates of land tax and conditions of its levy may be substituted exceptionally by introducing changes to the Law of Ukraine “On Land Tax” not later than three months before the start of the new budget year.
Pursuant to the Law, object of land tax shall be a land plot. The subject of land tax shall be the owner of land plot or land user and lessee thereto.
The Law sets rates of land tax depending on the category of land plot. It is envisaged that agricultural lands shall be taxable at rates set by this Law, if they were granted according to the set procedure and are used according to their target use regardless of the category thereof they refer.
The Law also regulates the questions related to payment for use of land plots occupied by industrial objects, communications, apartment houses and other objects of social destination within settlements. A separate chapter of the Law is devoted to monetary land evaluation. It is established that monetary evaluation of land plot shall be conducted by the State Committee of Ukraine on Land Resources by annual indexation of coefficients until January 1.
The Law contains enlists subjects that shall be exempted from land tax. According to the Law, reserves, national natural parks, game reserves, regional landscape parks, botanical gardens, dendrological and zoological parks, natural monuments, reserve places and parks monuments of landscape art, establishments, enterprises and organizations which activity has great social significance shall be exempted from land tax.