Exemption from real estate tax and land tax for the period of martial law

In the context of martial law in Ukraine, the government has introduced a number of special measures aimed at supporting citizens and businesses. One of the most important mechanisms of financial relief for owners of real estate and land plots is the exemption from real estate tax and land tax for the period of martial law. In this article, we will take a closer look at who can benefit from this exemption, under what conditions it is granted, and what steps should be taken to exercise this right.

Legal framework

The legal basis for tax exemption for the period of martial law is set out in a number of regulations:

1. The Law of Ukraine "On Amendments to the Tax Code of Ukraine on Support of Taxpayers for the Period of Martial Law" - defines mechanisms for temporary exemption from tax liabilities.

2. The Tax Code of Ukraine (TCU) - regulates the procedure for the calculation and payment of tax on real estate other than a land plot and land tax.

3. Decree of the President of Ukraine on the introduction of martial law - creates legal grounds for the temporary application of special tax regimes.

Thus, the state provides a legal basis for temporary relief of the financial burden on individuals and businesses that own real estate and land plots.

Who is affected by the dismissal

The following categories of taxpayers are exempt from real estate and land tax:

1. Individuals - owners of privately owned apartments, houses, cottages, and land plots.

2. Legal entities - enterprises, organizations, and institutions that own or use real estate and land plots subject to taxation under the Tax Code.

3. Tenants of state or municipal property - subject to the conclusion of a lease agreement and the existence of special provisions in the legislation on exemption from lease payments during martial law.

It is particularly important that the exemption does not apply to all tax liabilities, but rather to those related to real estate and land plotsfor which property tax and land tax are charged.

List of taxes covered by the exemption

1. Tax on immovable property other than a land plot
   This includes apartments, private houses, garages, summer cottages, office premises, warehouses and other real estate subject to taxation under the Tax Code.

2. Land tax
   Payment for privately or communally owned land plots is temporarily canceled or postponed for the period of martial law.

3. Property tax on legal entities
   Organizations can also take advantage of the exemption if the property is used for business activities or is on the balance sheet of the enterprise.

Conditions for granting exemption

Exemption from real estate tax and land tax is granted to temporarilyfor the period determined by the Decree of the President of Ukraine on martial law. The main conditions include:

1. Compliance with the deadlines for filing declarations
   For legal entities and individuals, it is important to file a tax return within the established deadlines, even for the period when the exemption is provided. This is necessary to formally confirm the right to the exemption.

2. Absence of debt
   In most cases, the exemption is granted to those taxpayers who do not have significant tax arrears for previous periods. The state authorities may verify the status of settlements before granting the exemption.

3. Application at the location of the object
   The tax benefit is applied at the place of registration or accounting of the real estate or land plot.

Procedure for registration of dismissal

Individuals:

1. Submit an application to the local tax authority or use the electronic services of the State Tax Service.

2. Attach documents confirming ownership of real estate and land plots (certificate of ownership, extract from the State Register, etc.).

3. If the application is successfully considered, the tax authorities issue a decision on temporary tax exemption.

Legal entities:

1. Amend tax returns to reflect the period of martial law.

2. Submit an amended declaration or notification to the STS authorities with a note on dismissal.

3. Receive official confirmation of the application of the benefit.

Important nuances and risks

1. Temporality of the benefit
   The exemption is valid only for the duration of martial law. After its expiration, taxpayers must resume paying taxes, if necessary, make accruals for the periods when the exemption was in effect.

2. Tax control
   The tax authorities reserve the right to verify the correctness of the calculation and application of the benefit. Failure to submit documents in a timely manner or incorrectly may result in penalties.

3. Restrictions for certain categories
   Some properties, such as commercial real estate that is actively used for profit, may have restrictions on full exemption. It is important to consult with legal counsel to determine the exact status.

Practical advice from Axel Legal

1. Verification of documents
   Before submitting an application, make sure that all documents for real estate and land plots are up-to-date and registered.

2. Consultation with a tax lawyer
   Even if there are obvious grounds for dismissal, it is worth contacting specialists to minimize risks and ensure the correct application of the benefit.

3. Use of electronic services
   The State Tax Service provides an opportunity to submit declarations and applications online, which is especially important during martial law.

4. Fixation of terms
   Maintaining a calendar of tax liabilities helps to avoid penalties in case of termination of martial law and resumption of tax payments.

Conclusions.

The exemption from real estate and land tax for the period of martial law is an important mechanism of state support for citizens and businesses. It helps to reduce the financial burden and ensure the stability of real estate owners in difficult conditions. However, in order to effectively use this benefit, it is necessary to carefully follow the procedures for submitting documents, timely file declarations and, if necessary, seek legal advice from qualified lawyers.

Team. Axel Legal is ready to provide a full range of services on tax benefits during martial law, including advising, preparing and submitting the necessary documents, as well as protecting the interests of taxpayers in case of disputes with tax authorities.

Thanks to the timely use of legislative benefits, citizens and businesses can reduce financial pressure and focus on their basic needs and the development of their activities even during martial law.