Local taxes will be waived for businesses in frontline areas

Local authorities will now be able to exempt businesses from paying land tax, real estate tax and the single tax. The government will compensate local budgets for the lost funds from the state budget.

This was reported by the Ministry of Reintegration of the Temporarily Occupied Territories of Ukraine.

It explains that the government has approved amendments to the Procedure defining the mechanism for providing additional subsidies to local budgets.

"Frequent shelling in the frontline territories often leads to damage to the property of enterprises that pay local taxes," the ministry explains.

"We are talking about the territories where military operations are ongoing or temporarily conducted, according to the list approved by the Ministry of Reintegration. Such a decision is necessary, in particular, for businesses in Kharkiv region, a territory that suffers significant damage due to shelling by the Russian Federation.

The Ministry of Finance adds that a total of UAH 33.4 billion in additional subsidies are envisaged for such communities in 2024, of which UAH 19.3 billion has already been allocated.

The remaining UAH 14.1 billion is now available to compensate for the decrease in revenues from the main local taxes, including real estate tax, land payment and single tax.

"It is foreseen that the additional subsidy in the second stage will be distributed every quarter: for local budgets (except the budget of the city of Kyiv) taking into account the actual receipts of the personal income tax to the local budgets; for local budgets (except the budget of the city of Kyiv) in the case of including relevant territories to section I (provided that the date of termination of the possibility of hostilities and the date of the end of hostilities are not determined) of the list of territories on which hostilities are (were) being conducted or temporarily occupied by the Russian Federation, taking into account the actual revenues to local budgets of payment for land, real estate tax property, other than a land plot, and a single tax," says the message of the permanent representative of the Cabinet of Ministers of Ukraine in the Verkhovna Rada, Taras Melnychuk.