The Government of Ukraine made an important decision that will help support business in the frontline territories. From now on, local authorities will have the right to exempt enterprises from paying land tax, real estate tax and single tax.
This became possible thanks to amendments to the Procedure, which defines the mechanism of providing additional subsidies to local budgets.
“Due to constant shelling in the front-line territories, the property of enterprises that pay local taxes is often damaged“, – explain in Ministry reintegration of temporarily occupied territories of Ukraine.
The new decision concerns the territories where hostilities are (were) taking place. The list of such territories was approved by order of the Ministry of Reintegration. This decision is especially relevant for the business of the Kharkiv region, which is experiencing significant destruction due to shelling by Russian troops.
According to the Ministry of Finance of Ukraine, for 2024, additional subsidies in the amount of UAH 33.4 billion are provided for such communities. Of these, UAH 19.3 billion have already been distributed. The remaining UAH 14.1 billion is now available to compensate for the decrease in income from basic local taxes. This applies to property tax, land tax and flat tax.
Additional grants will be distributed quarterly:
- For local budgets (except the budget of the city of Kyiv), taking into account the actual receipts to local budgets of personal income tax.
- For local budgets (except for the budget of the city of Kyiv), in the event that the relevant territories are included in Section I (provided that the date of cessation of the possibility of hostilities and the date of the end of hostilities are not specified) of the list of territories on which hostilities are (were) conducted or temporarily occupied by the Russian Federation, approved by the Ministry of Reintegration, taking into account the actual receipts to local budgets of land tax, tax on real estate other than land, and a single tax.
