Landowners May Receive Fines: Which Taxes Need to Be Paid
Owners of land shares and agricultural plots who lease out their land must pay taxes on the income received. The Land Fund emphasized that rent for land use is taxable regardless of the form of the contract concluded.
In most cases, the tax obligations are fulfilled by the tenant. If the land is leased by a legal entity or an individual entrepreneur, they act as the tax agent: withholding the necessary taxes from the rent amount and transferring them to the budget when paying the landowner.
However, a different situation arises if the tenant is an ordinary individual without entrepreneur status. In this case, the landowner is personally responsible for declaring income and paying taxes. To do this, it is necessary to submit a tax declaration and fulfill the corresponding financial obligations.
The amount of income on which taxes are calculated is determined according to the rent amount specified in the contract. At the same time, it cannot be less than the minimum rent payment established by law.
Income from leasing agricultural land is subject to personal income tax at a rate of 18%. Additionally, from 2025, a military tax at a rate of 5% will apply to such income.
The Land Fund urged landowners to carefully check the terms of lease agreements and monitor compliance with tax obligations. Failure to comply with legal requirements may lead to fines and additional charges.
As previously reported by the "Judicial and Legal Newspaper", the mere ownership of a land share is not a reason to deny housing subsidies. However, income received from its lease is taken into account when determining eligibility for assistance and its amount.
The Pension Fund of Ukraine explained that when assigning housing subsidies, the income that the household receives from the land share during the period of its receipt is taken into account.
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