On the 1 January 2007, the article 11 of the Law of Ukraine“On Tax Profits of Individuals” came to power. The order of tax payment from the operation with property purchasing and exchange was established. According to new rules while selling the property object (flat, house, room, garden house, outbuildings, land sites) with an area of more than 100 m2 the tax will be counted as 1% from the object cost for that part of income that is obtained for the area that is over 100 m2 established by the Law. is too much” “On Tax Profits of Individuals ” needs the comments that will be presented by the Ministry of Justice. As well there is a possibility that the president will put a veto to the adopted Law.

This item predicts that all the transactions of buying property in Ukraine will be held with the presence of document about the tax payment by every party.

But currently private notaries are not in hurry “to become tax agents” and to carry out the procedures of property selling and purchasing as they are waiting for the explanation from the Ministry of Justice that is to be specified on the 20 January 2007.

Private notary Alexandr Sokolov reports that “it is important that the tax should be paid before transaction. But hence the procedure can be canceled. There is no process for returning back of this money”.

Market members are sure that it will stop the deals temporarily as the sellers and buyers will not wish to pay new taxes. The notary continues: “If to count all the payments – notary payment, pension fund, tax and realtor payment – it includes 10-12% from the bargain sum. It

The attorney of the company Ukrinteks Svetlana Bovsunovska also admits that the property market is going to stop for several months until there will be no moratorium for this Law.

As a result it is ought to say that new adoption of the Law of Ukraine

Source:

http://www.minjust.gov.ua/0/8483