Ukrainian agrarians to pay new land tax since Jan 1, 2023

MOSCOW. Jan 9 (Interfax) - Ukrainian agricultural producers from January 1, 2023 are obligated to pay the minimum tax liability, a tax on agricultural land approved in November 2021, and payment of which begins in 2023 for 2022.

According to the Ukrainian media with reference to the information on the social media of the Agro Innovation Club (brings together farmers, developers of innovative solutions and financial technology companies), the new tax applies to owners and users of land located outside populated areas, and for land within populated areas - only if its size exceeds 0.5 hectares.

The minimum tax liability is accrued for the use and possession of a land plot, irrespective of whether agricultural activity was carried out on it.

The average minimum tax liability will be about 1,500 UAH/ha per year, and will consist of the land tax itself, a tax on the income from the sale of crops grown on this plot, a tax on the income of a farmer and a fee on the wages of hired employees. At the same time, in the first two years the tax will be an average of about 1,000 UAH/ha, as it will be charged at a rate of 4% rather than 5%.

Individuals who are not registered as individual entrepreneurs will receive a tax notice with a detailed calculation of the amount of the annual tax liability, and such notices will be received from January 1 to July 1, 2023. At the same time, individuals who do not receive a relevant tax notification from the oversight body within a certain period will not pay the minimum tax liability.