State Tax Service informs about one of the common mistakes made by taxpayers during compiling tax declaration on real estate tax other than land plot (hereinafter – Declaration), namely: incorrect application of the minimum amount of salary declaring "new" real estate object.
Consequence of such an error is overestimation of the real estate tax other than land plot liability, as Ukraine has a tendency to increase the minimum salary during a calendar year.
Please note that Declaration is filled out taking into account notes contained in the Declaration form itself and its annexes, approved by Order of the Ministry of Finance of Ukraine № 408 as of 10.04.2015 (in edition of Order of the Ministry of Finance of Ukraine № 371 as of 10.11.2022).
Column 15 of Annexes I and II of the Declaration indicates amount of the minimum salary established by the Law on the State Budget of Ukraine as of January 1 of the reporting (tax) year.
For example,
legal entity acquired ownership rights to the real estate object in November 2022 and must declare such object not later than December 20, 2022;
amount of the minimum salary on January 1, 2022 was set at 6 500 UAH and as of October 1, 2022, it was changed to 6 700 UAH;
legal entity, declaring such object, must apply the minimum salary in the amount of 6 500 UAH.
Therefore, in case of acquiring right to the real estate object during the calendar year or declaring such objects for previous accounting years, amount of the minimum salary is indicated in Declaration exclusively in the amount established on January 1 of the reporting (tax) year, and not at the time of compiling (submission) of Declaration by the taxpayer.