Tax Payment During Notarial Certification of Contracts: Who and When Transfers Personal Income Tax and Military Levy
When concluding contracts of sale, donation, or inheritance, individuals often face the question: who should pay the tax and according to which details.
The Main Department of the State Tax Service in Kyiv region explained that according to Article 168 of the Tax Code of Ukraine, this provision defines the mechanism for calculating, withholding, and transferring personal income tax. In cases of notarial certification of property alienation contracts or inheritance registration, the tax obligation usually arises for the individual taxpayer.
According to paragraph 38.2 of Article 38 of the Tax Code, the payment of tax and levy is made directly by the taxpayer, and in cases provided by tax legislation, by the tax agent or the taxpayer's representative. Paragraph 19.1 of Article 19 of the Tax Code states that taxpayers conduct matters related to tax payment personally or through their representative. Representatives of taxpayers are persons authorized to represent their legal interests and handle matters related to tax payment based on law or power of attorney.
Depending on the grounds for taxation, different budget income classification codes are used.
If the income is subject to declaration, Budget Revenue Classification Code 11010500 is applied — Personal Income Tax paid by individuals based on annual declaration results, and 11011001 Military Levy paid by individuals based on annual declaration results.
If there is no declaration obligation, the tax is paid under Budget Revenue Classification Code 11010501 — Personal Income Tax paid by individuals not subject to mandatory declaration, and the military levy under Budget Revenue Classification Code 11011000.
Funds from personal income tax are credited to the budgets of territorial communities, while the military levy is directed to the state budget.
Legal entities acting as tax agents, who calculate (pay) taxable income in favor of the taxpayer, are obliged to withhold tax from such income and pay (transfer) personal income tax and military levy to the budget income classification codes, namely: Budget Revenue Classification Code 11010400 — Personal Income Tax paid by tax agents from taxpayer income other than wages, and Military Levy Budget Revenue Classification Code 11011000.
Funds from personal income tax are credited to the budgets of territorial communities, and the military levy is directed to the state budget.
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