Taxes on real estate alienation

The procedure for taxation of personal income is specified in Section IV of the Tax Code of Ukraine. So, according to pp. 163.1.1 clause 163.1 of Art. 163 ЕСU, the subject of taxation of a resident of Ukraine - is his total monthly (annual) taxable income.

tax register

What does the total monthly (annual) taxable income mean? First of all, this is part of the proceeds from operations with property, the size of which is determined in accordance with the provisions of Art. 172 of the Code (paragraph 164.2.4 of clause 164.2 of Article 164 of the Code).

It should be noted that, in accordance with paragraph 172.1 of the Tax Code, income received from the sale (exchange) is not more than once during the reporting tax year of a residential building, apartment or part thereof, a room, a garden (cottage) house (including a land plot, objects, as well as household buildings and buildings located on such a land plot), as well as a land plot that does not exceed the norms of free transfer (determined in Article 121 of the Land Code of Ukraine) and subject to the possession of such property owned by the taxpayer for over three years, is not taxable.

At the same time, income, which, in accordance with Section IV of the Tax Code, is not included in the total taxable income of individuals (is not subject to taxation, is taxed at zero rates) is exempted from the taxation of military collections. This is provided by pp. 1.7 clause 161 of division 10 of section XX of the TCU.

Accordingly, the income received by the taxpayer from the sale during the reporting tax year of more than one of the real estate objects specified in paragraph 172.1 of Art. 172 TCU, or from the sale of a property not specified in clause 172.1 of Art. 172 TCU, subject to taxation at a rate of 5 per cent. (provided in clause 167.2 of Article 167 of the TCU). In addition, such income is taxed by the military tax (paragraph 1.2 of clause 161 of division 10 of section XX of the Code) - at the level of 1.5 per cent. object of taxation (clause 1.3 of clause 161 of division 10 of section XX of the Code).


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