Tax on property damaged by war: when and how much do you not have to pay

Clarification on property tax payment

The Main Department of the State Tax Service in Zaporizhzhia Region provided clarification on the payment of property tax for real estate damaged as a result of Russia's armed aggression, as well as defined the periods of exemption from this obligation.

According to the Decree of the President of Ukraine dated February 24, 2022, No. 64/2022, martial law was introduced in Ukraine. Temporary provisions regulating the payment of property tax for real estate damaged as a result of the war are in effect until December 31 of the year in which martial law is terminated or canceled. Subparagraph 69.22 of paragraph 69 of subsection 10 of section XX 'Transitional Provisions' of the Tax Code of Ukraine defines the peculiarities of this tax payment.

Exemptions from tax for individuals and legal entities

For individuals, exemptions for residential real estate apply for the year 2021 and subsequent tax (reporting) periods. Legal entities receive exemptions for residential real estate from March 1, 2022. Similar rules also apply to non-residential real estate: exemptions for individuals and legal entities also apply from March 1, 2022.

• Tax accrual resumes from the month following the month when the property is deemed suitable for living.
• For properties damaged from January 1, 2023, no tax is accrued or paid until the first of the month following the month in which the properties are deemed suitable.

Thus, taxpayers can take advantage of these benefits to reduce the financial burden in wartime. It is important to monitor changes in legislation and timely contact tax authorities for current information.

This clarification is an important step in supporting taxpayers affected by the war. In conditions of economic instability, such benefits can significantly ease the financial burden on citizens and enterprises.

In particular, the presence of clear rules regarding the exemption from property tax allows avoiding additional financial difficulties and simplifies the process of recovery after hostilities.