News
06.10.2016
UCAB supports the bill № 5225 on the improvement of the tax system in the sphere of land relations and agriculture
Draft Law offers to establish minimum social commitment of 1 hectare and leave the special regime of taxation for animal husbandry, horticulture, viticulture, horticulture and the production of sugar beet.
Draft Law on making amendments to the Tax Code of Ukraine concerning improvement of tax system in the sphere of land relations and agriculture was registered in the Verhovna Rada on October 4. The initiators of the bill were 21 MP. The document submitted to the Committee for tax and customs policy.
The bill amends the Tax Code of Ukraine, which will introduce minimum social tax liability (MPSZ). The object of tax assessment will be agricultural land and its rate will be 1% of the normative monetary value of land (NGOs) per hectare of farmland. However, according to the concept of the bill, private individual will pay to the budget positive difference between the amount of tax liabilities MPSZ and the total amount of paid for the reporting (tax) year personal income, earned from the sale of agricultural products. Also, while calculating the tax liability MPSZ of private individual, the minimum land are size of 1 hectare is excluded from calculation. This will avoid taxation of 73% of rural households.
Also proposed amendments to the Tax Code of Ukraine stipulates to save special tax regime for animal husbandry, horticulture, viticulture, horticulture and the production of sugar beets on a regular basis.
