15 June this year registered in the Verkhovna Rada a draft Tax Code (registration number 6509). The author of the project indicated the Cabinet of Ministers and the Prime Minister personally. According to the site of the Verkhovna Rada adopted the document as a basis and is already preparing for the second reading.
Of course, the many are wondering how the Tax Code will regulate issues related to real estate. Even after the first reading of the draft Code, it becomes clear that the number of innovations relating to real estate, significantly. This is to start the cycle devoted to "news", who expect the real estate market, if the Tax Code would be adopted in the form as it is now publicized on the website of the Parliament.
1. Property tax is not expected.
At least, the entire multi-page document does not mention the tax from property owners, although it lists the existing taxes and fees. Because the codes are written and adopted specifically to collect in one document all the disparate acts on a particular topic (in this case taxes), we can assume that the government, as the author of the project does not yet have a clear idea of what should be a tax on property, and whether he needs at all.
2. Registration with tax authorities.
a) The draft Tax Code provides that such an innovation as "minor place accounting. This means that registration in tax authorities will have to become not only the location of the taxpayer, but also the location of its offices (for legal entities), as well as its place of registration of immovable property.
Thus, when buying real estate not for its location (for example, in another district or province), the buyer must be registered with the tax office within 10 days from the date of registration of the property. It should also be especially noted that this applies even to simple physical persons who do not conduct business activities1.
b) also introduced the concept of "integration of the object of taxation. The landlord will be obliged to submit to the tax office notification of each conclude a lease. Such notification must be submitted twice, not later than 10 days after the conclusion of the contract and in the same period after its termination or divorce.
What might this mean in practice for operators of real estate market such as, for example, commercial or office centers? No doubt this will increase that a considerable amount of mandatory reporting, which already has a lot of time and effort.
3. Single tax.
The draft Tax Code provides that a simplified system of taxation will not apply to private employers who provide intermediary services for buying, selling, renting and evaluation of real estate. From this we can conclude that the only legal litsa2 be able to provide these services and stay on the single tax.
In addition, no legal or physical persons can not be a single tax payers, if they rent out land, residential or non-residential premises (buildings, constructions) and / or their parts. Obviously, in this case refers to renting out their property.
Also, no legal or physical persons on a single tax would not be able to provide services related to the organization of trade, the provision of services to provide appropriate conditions for trade in other natural or legal persons and renting stalls in the markets and / or commercial properties. Thus, common cleaning services can provide only legal entities and individuals on a common system of taxation.
Currently, the draft Tax Code adopted in principle and is preparing for the second reading in the Verkhovna Rada. If it is adopted in the near future, the code will take effect from 1 January 2011 (except for some of his articles, which will take effect later).
It becomes apparent that the real estate market operators expect severe restrictions on many of accumulated business schemes will have to give. Even a cursory analysis, which is made in this material, shows that business conditions relating to real estate, tightened, if the Code would be adopted in its current form. Hopefully, it will be substantially completed in the near future towards the liberalization of its rules.
1 paragraph 1 of paragraph 28.3 of Article 28 of Chapter 5-1
2 Not more than 50 employees and total revenue for the 4 years preceding the transition to a single tax is 2 mln.