The U-LEAD with Europe Programme works together with partners to improve the tax culture of the population and the businesses community.

Together with the Head Office of the State Tax Service in the Ternopil oblast, the regional office of U-LEAD held an information session for financial experts from the municipalities. The main topic was innovations in tax legislation and their impact on municipal budgets in 2023.

According to Ruslan Tsvihun, Acting Head of the Main Directorate of the State Tax Service in the Ternopil oblast, public outreach is essential for the State Tax Service.

“Such cooperation with U-LEAD always brings positive outcomes, improving the tax culture of the population and the business community and, therefore, filling local coffers. Cumulatively, this leads to an increase in funds for the development of the region’s infrastructure,” he said.

The main innovation in 2023 was the introduction of minimum tax liability for taxpayers that are natural persons who own agricultural land plots or use them based on the rights of lease, sublease, emphyteusis or permanent use.

According to management experts, this innovation is designed to make the economy more transparent and bring unscrupulous tenants and landlords out of the shadows. The total amount of the minimum tax liability for natural persons who are not registered as individual entrepreneurs is determined by the control bodies at their tax address by the 1st of July of the year following the reporting year.

The minimum tax liability includes corporate income tax, personal income tax and military tax on the sale of own agricultural products, a single tax and land tax.

The minimum tax liability for taxpayers is calculated according to the formula tied either to the normative monetary valuation of the land plot itself or of 1 hectare in the oblast where it is located, taking into account the index.

In accordance with the changes introduced by Law No. 2120-IX, temporarily for the 2022 and 2023 reporting years, the minimum tax liability is not calculated or paid for land plots located in temporarily occupied territories or in territories where hostilities are taking place, as well as those defined as contaminated with explosive ordnance and/or having fortifications erected.

Furthermore, experts of the State Tax Service provided clarification on other topics of interest to the participants of the event, including changes in the calculation and payment of local taxes, changes in the excise tax, issues of tax debt, etc.