Ministry of Revenue and Duties of Ukraine approved the order according to which physical persons guarantors under the loan agreements have to pay tax on the income from the sale of real estate collateral, if it has been disposed of by the bank for the judgment debt. The document was adopted for the settlement of tax changes after the entry into force of the Tax Code of Ukraine.
Received from the sale of real estate collateral income under the Tax Code ( NC ) are not taxed .
" Guarantor shall reflect such income in the annual tax return and pay the tax amount on their own ", - stated in the order of the Ministry.
"This requirement does not apply to the transfer of chattel mortgage guarantors, such as cars or securities ," - says Trigub .
The banks must notify the tax on income from the sale of the guarantors of real estate collateral , said the chief accountant of the bank "National Credit" Elena Kolos . In practice, financial institutions were tax agents and guarantors themselves have not filed a tax return .
Earlier taxation of such income has not been settled . "The law " On taxes on personal income "was not a special procedure for taxation in the case of foreclosure of the guarantor , as well as the display of these operations in the tax declaration of the citizen " - says lawyer law firm " Skliarenko and partners " Andrew Trigub .
Income tax guarantor must not pay full amount received for the sold property at the request of the bank , but only the portion exceeding the amount of the borrower's debt to the bank. "Based on the provisions of the law " On mortgage " - says Trigub - Bank mortgagor shall pay 90 % of the amount of such excess ."
The basis for the calculations in this case should serve the estimated value of the property at the time of treatment by the court foreclosure .
Guarantor should display the bag actually received income in the income and wealth, which is served until May 1 , and declare the amount of income tax at the rate of 5 % is payable before August 1 of the year following the reporting clarifies Trigub .