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It is possible to make changes to the Tax Code of Ukraine and other legislative acts of Ukraine to clarify some provisions related to determining the amount of rent for land

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Sakharuk Anatolii
Lawyer
Ukraine / Kyiv

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Reading time: 6 minutes Total views: 36
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Publication date: 27.05.2024

It is possible to make changes to the Tax Code of Ukraine and other legislative acts of Ukraine to clarify some provisions related to determining the amount of rent for land
Introduction


Possible amendments to the Tax Code of Ukraine and other legislative acts of Ukraine relate to clarification of the provisions determining the amount of rent for land. These changes are intended to provide more transparent and reasonable mechanisms for calculating rent, which will contribute to the fair use of land resources and increase the efficiency of their management.


The main changes
 

1. Clarification of the rent calculation method
The proposed changes provide for clarification of the methodology for calculating the rent for land. This includes:
Definition of clear criteria for assessing the value of land plots, taking into account market conditions and economic activity on the land plot.
Introduction of a single methodology for calculating the rent, which will be applied to all categories of land.
 

2. Setting the minimum and maximum rent rates
To ensure fairness and equity, the changes include setting minimum and maximum land rent rates. The main provisions include:
Establishing minimum rates that ensure a sufficient level of income for local budgets.
Introduction of maximum rates that prevent excessive financial burden on tenants.
 

3.Increasing transparency and accountability
To ensure transparency and accountability in the process of determining the rent, the changes provide for:
Mandatory publication of the calculation methodology and rent rates on the official websites of local self-government bodies.
Establishing mechanisms of public control over the process of determining and calculating the rent.
 

4. Consideration of socio-economic factors
The proposed changes also take into account socio-economic factors affecting the amount of rent. This includes:
The possibility of reducing the rent for socially important facilities, such as educational institutions, hospitals and other institutions that are important for the community.
 

Establishment of preferential lease conditions for enterprises that contribute to the development of the local economy and the creation of jobs.
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Impact on the economy and communities
For tenants


Clarifying the calculation methodology and establishing clear criteria for determining the rent will contribute to more predictable and justified financial conditions for tenants. This will reduce the risks of excessive workload and contribute to the stable development of the business.

 

For local communities and budgets


Establishing minimum rental rates will ensure stable revenues to local budgets, which will allow financing social programs and infrastructure development. Transparency and accountability of the rent determination process will increase community trust in local self-government bodies.


Conclusion


Possible amendments to the Tax Code of Ukraine and other legislative acts to clarify the provisions related to determining the amount of rent for land is an important step in the direction of increasing the transparency and efficiency of the use of land resources. The introduction of a clear calculation methodology, the establishment of minimum and maximum rates, as well as taking into account socio-economic factors will contribute to the fair and rational use of land, which will positively affect the development of local communities and budgets.

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