The State Tax Service reminded the rules of taxation and registration of inheritance or gift from a resident to a non-resident
A gift in the form of property received by a non-resident from a resident of Ukraine is subject to taxation under the same rules as inheritance (clause 174.6 of article 174 of the Tax Code of Ukraine). This was reminded by the State Tax Service of Ukraine.
Main rules for non-residents:
- Rates. If the heir is a non-resident and the testator is a resident of Ukraine, any object of inheritance or gift is taxed with personal income tax at a rate of 18% and military levy at a rate of 5%.
- Who pays. The obligation to pay the tax and levy fully rests on the non-resident heir.
- Payment deadlines. The non-resident heir must pay the tax and military levy before the notarization of the property, and in rural areas – before the registration of documents by an authorized local government official.
- Important! Without a document confirming full payment, the notary (or the official of the village council) will not issue a certificate of inheritance rights or a gift agreement.
Where and under which details to pay?
The tax and military levy are paid at the place of notarization of the inheritance or gift agreement.
For tax payment, the budget classification code 11010501 is used – "Personal income tax paid by individuals who are not subject to mandatory declaration."
For payment of the military levy, the budget classification code 11011000 is used – "Military levy."
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