Tax payment during notarization of contracts: who and when transfers PIT 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 notarization 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 tax and levy payment 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 defines that the taxpayer conducts matters related to tax payment personally or through their representative. Representatives of the taxpayer are persons who can represent their legal interests and conduct 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, KICB 11010500 is applied – Personal income tax paid by individuals based on annual declaration, and 11011001 Military levy paid by individuals based on annual declaration.
If there is no declaration obligation – the tax is paid under KICB 11010501 Personal income tax paid by individuals not subject to mandatory declaration, and the military levy under KICB 11011000.
PIT funds 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 accrue (pay) taxable income to 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: KICB 11010400 Personal income tax paid by tax agents from taxpayer income other than wages, and Military levy KICB 11011000.
PIT funds are credited to the budgets of territorial communities, the military levy is directed to the state budget.
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