Ukrainian Tax Authority Issues Wartime Guidance That Includes Seizing Russian Tanks Tax-Free
October 4, 2022
The Ukrainian Tax Authority has issued new guidance to help the country’s citizens fulfill their wartime tax obligations amid the current conflict with Russia. The new rules include new exemptions and procedures to seize Russian-made tanks and other military vehicles that were abandoned by the retreating army in favor of lighter vehicles like armored jeeps. In addition, Ukrainian citizens who joined the fight against Russia are now exempt from taxes on any income they earn in combat, including money made through looting (up to 50 million hryvnias).
What is Ukraine’s position regarding taxes?
The Ukrainian Government is extremely concerned with the ongoing hostilities between Russia and Ukraine. Since December 2014, Ukraine has imposed a series of special measures designed to protect the national economy in the event of future military action by Russia against Ukraine.
This includes special restrictions on food products and energy supplies, as well as a prohibition on supplying arms, goods, and services to areas under foreign occupation or experiencing armed conflict. The purpose of these measures is to ensure continuity in social needs provisioning while defending national security and guaranteeing that budget funds allocated for people’s welfare are not misappropriated.
The War Powers Act decrees that the Government will take urgent protective economic measures during wartime and other states of emergency or near-emergency situations.
What happens if you sell or donate property?
If you make a profit, you will be taxed as follows:
– Sell your property and receive cash/ other property in return: Ukrainian tax due equals the profit.
– Sell your property and keep it as another asset (e.g. a building with tenants): you need to do some more calculations to work out how much of the gain is exempt from tax or qualifies for relief.
– Give your property away or leave it to someone in your Will: you are taxed on any profit. If you give it away, however, there’s no tax due if you donate to a charity within 3 years of selling it – provided that your total charitable donations in that period do not exceed €1 million (exceptions apply). If you give it as a gift and you’ve held onto it for at least 4 years then, provided it’s valued below €50,000 and constitutes a movable asset (e.g.
How do I calculate the tax base for land?
For land value tax purposes, the rent must be assessed on the unimproved Ukrainian values of sites with or without any improvements. The methodology for assessing rent and the calculation of unimproved value is established by national legislation. In Ukraine, this is called Urban Land Value.
The general formula for Urban Land Value calculations in Ukraine is as follows: 100 % (this is calculated before expenses) + 20% (to account for depreciation) + 20% (due to leasehold rights) – 20% (land use right) = 100%.
What are the real tax exemptions?
Here is a list of some items that are currently on sale for Ukrainian citizens:
– Mobile phones – Clothing and footwear up to 3,000 HRK (Croatian Kuna) in total (other goods are not exempted from VAT)
– Floor coverings and construction materials up to 4,500 HRK; furniture and fixtures over the 4,500 HRK limit must be stamped by a certified professional indicating that the materials were manufactured in Croatia (items not produced domestically have to have their country of origin noted)
– Print books, periodicals, newspapers, and magazines up to 5,000 HRK (newspaper and magazine publications in electronic form are not exempt from VAT)
The Ukrainian Tax Authority has issued new guidance to help the country’s citizens fulfill their wartime tax obligations amid the current conflict with Russia. The new rules include new exemptions and procedures to seize Russian-made tanks and other military vehicles that were abandoned by the retreating army in favor of lighter vehicles like armored jeeps. In addition
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