Fines up to 85 thousand hryvnias: how illegal apartment rentals are punished
Housing owners who rent out apartments without officially registering a contract and paying taxes may face fines ranging from 51 to 85 thousand hryvnias.
As explained by the Main Department of the State Tax Service in the Poltava region, sanctions are applied in cases where tax evasion is established. If the amount of unpaid tax liabilities is significant, the legislation also provides for the possibility of initiating criminal proceedings.
In addition to the fine, if violations are detected, the landlord will have to pay all unpaid taxes and additional charges. Such cases also become grounds for inspections and review of tax obligations.
The State Tax Service reminds that individuals who receive income from renting out housing are obliged to pay 18% personal income tax and 5% military levy. Such income must be declared by reflecting it in the annual property and income declaration.
As previously reported by the "Judicial and Legal Newspaper", the Ministry of Justice reminded about the specifics of concluding a lease (rental) agreement for housing and explained which conditions must be considered by the parties for proper legal formalization. According to Article 811 of the Civil Code of Ukraine, such an agreement must be concluded in writing. Article 821 of the Civil Code of Ukraine states that the agreement is concluded for a term agreed upon by the parties. If the term is not specified in the document, it is considered concluded for five years.
At the same time, according to Article 638 of the Civil Code of Ukraine, the agreement is considered concluded only after the parties reach an agreement on all essential terms.
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