Rada supported reducing PIT from 18% to 5% for landlords
Kyiv • UNN
The Parliament passed bill No. 15111-d, which reduces the Personal Income Tax (PIT) rate for real estate landlords. Now, instead of 18%, property owners will pay 5%.
The Verkhovna Rada has passed a bill on the taxation of digital platforms, which, among other things, reduced the tax burden for individuals who officially rent out real estate. Through an amendment submitted to the document, the parliament supported reducing the personal income tax rate for landlords from 18% to 5% starting January 1, 2027. This was reported by MP Olena Shuliak, Chair of the Verkhovna Rada Committee on State Power, Local Self-Government, Regional Development, and Urban Planning, according to UNN.
Bill No. 15111-d concerns amendments to the Tax Code of Ukraine and other legislative acts regarding the implementation of international automatic exchange of information on income received through digital platforms, as well as the taxation of such income. However, my amendment regarding the taxation of personal income from renting out real estate was also included in the document. According to this amendment, the income of an individual landlord from leasing residential or non-residential real estate will be taxed at a 5% personal income tax (PIT) rate. Based on the results of the year, the landlord must file an annual tax return and pay the tax to the budget independently,
According to her, currently, homeowners who officially declare rental income must pay 18% PIT and a 5% military tax.
She explained that based on the results of the year before last, only 900 Ukrainians declared income from renting out housing. Approximately another 56,000 individual entrepreneurs (FOPs) rent out property under the simplified taxation system.
Reducing the PIT rate to 5% could make the official registration of rental relations less burdensome for homeowners. It is expected that a lower tax rate (5% plus 5% military tax), effectively 10% instead of 23%, could create a simpler and clearer incentive for landlords to conclude contracts, declare income, and operate within the legal framework,
She also recalled that a large-scale housing reform is currently underway in Ukraine, the goal of which is to change Soviet rules for providing housing to those in need to effective European models, including social rent.
As a reminder,
The Verkhovna Rada today passed in its entirety a bill (No. 15111-d) on the taxation of digital platforms.