Tax rates on the sale of agricultural machinery have increased in Ukraine. The amount of the tax depends on the type of equipment and the number of transactions concluded during the year. About this reported press service of the State Tax Service of Ukraine.
Owners of tractors, combines, trucks, trailers and other agricultural equipment who plan to sell should take into account the updated tax requirements. In the case of the sale of freight transport, special machinery or agricultural machinery, such as tractors, combines or trailers, the personal income tax is 5% for the first or second transaction within the calendar year.
From the third agreement, the tax rate increases to 18%. In addition, from December 1, 2024, a military tax of 5% applies to such operations. When selling cars, motorcycles or mopeds, the first transaction during the year is not taxed. The second provides for the payment of 5% tax, and the third and subsequent ones – 18%.
The calculation of income is based on the value specified in the contract of sale, but it cannot be lower than the average market price or the market value determined in accordance with the law.
In case of non-payment of tax or military levy during the sale of equipment, an individual is required to submit a declaration of property status and income by May 1 of the year following the reporting year, and by August 1 to pay the amount of tax liabilities. The procedure for taxation of such transactions is regulated by Article 173 of the Tax Code of Ukraine.
