On January 13 at the extraordinary session of the Kharkiv City Council deputies have changed the city’s budget for 2016. It was necessary due to the adoption of the state budget and entry into force of certain laws.
This year, the Department of Finance expects to get more taxes in the budget from the residents of the city.
According to the director of the Budget and Finance Department of the City Council Tatiana Taukesheva, in the Tax Code were introduced changes according to which local councils can’t give tax deduction on real estate. Therefore, if earlier in Kharkiv tax exemption applied to apartments of more than 120 square meters now it applies to apartments of more than 60 square meters.
Kharkiv apartment owners with an area of more than 60 squares have to pay tax on the excess area from this year.
“If a family has a flat area, for example, 61 sq.m., then tax exemption applies to 60 sq.m. and as of 1 square meter it’s necessary to pay a tax of 2% of the minimum wage per year,” explained Tatiana Taukesheva.
According to her, the number of apartments with an area exceeding 60 square meters in Kharkiv – 8%.
“Therefore, according to the tax administration, additional revenues to the city budget will be about 3 million UAH. If we have appointed a tax of 3% of the minimum wage, then we would have more revenue. But we left 2% as it was in 2014 and 2015 years,” noted Taukesheva.
Note that the minimum wage in Ukraine for today is 1 378 UAH. That is, for every “extra” square meter it will be necessary to pay 28 UAH of tax.
Feel free to check our recent posts on topics The future of the Ukrainian Tax Code and Large enterprises of Kharkiv paid more than 11 billion UAH of taxes.
