Fixed Agricultural Tax

Legal entities that are agricultural enterprises of different organizational forms, predicted by the laws of Ukraine, peasant and other facilities that produce agricultural products and / or breeding, cultivation and fishing in inland waters (lakes, ponds and reservoirs) and its processing own or leased facilities, including own produced raw materials for tolling conditions, and carry out its supply, and in which the share of agricultural goods producing for the previous tax (reporting) year equals or exceeds 75 percent can conduct tax registration in a slightly simplified form, namely: to be taxpayers of fixed rural economic tax (hereinafter – FAT).

Taxpayers of FAT are not payers of following taxes and duties:

a) corporate income tax;

b) the land tax (except the land tax for land which is not used for carrying agricultural producing);

c) the fee for special use of water;

d) the fee for certain types of business (in the proceedings of the trading activity).

Other taxes and fees set by the Tax Code of Ukraine paid to agricultural producers in a certain order and code size.

Can not be registered as a payer FAT:

• an entity in which more than 50 percent of income earned from the sale of agricultural products produced and processed products, is income from sales of ornamentals (except cut flowers grown on lands belonging to the agricultural commodity on property rights or granted his use, and their processed products), wild animals and birds, fur products and furs (except fur materials);

• an entity that carries out activities for the production of excisable goods except wine grapes (codes under Ukrainian goods classification of foreign economic activity 2204 29 – 2204 30) produced at the enterprises of primary winemaking for companies making recycled, using such wine for the production of finished products;

• an entity who has a tax debt as of 1 January of base (accounting) year, except hopeless tax debt that arose as a result of force majeure.

Note that in the event when the reporting tax period the share of agricultural producing is less than 75 percent of total gross revenue, the company pays taxes in the next reporting period, on general grounds.

The object of the tax payers for FAT is the area of agricultural land (arable land, hayfields, pastures and perennial crops) and/or of the water areas (inland waters, lakes, ponds, reservoirs), which is owned by agricultural producers or provided by him for use, including the conditions of the lease.

The base of taxation for agricultural producers is normative monetary evaluation of one hectare of agricultural land (arable land, hayfields, pastures and perennial), conducted as of 1 July, 1995 for the water areas (inland waters, lakes, ponds, reservoirs) – normative monetary evaluation of one hectare of arable land in the Crimea or in the field, held as of 1 July, 1995.

Size of tax rates from one hectare of agricultural land and/or of the water areas for agricultural producers depends on the category (type) of land, their location and is (as a percentage of the tax base):

a) for arable land, hayfields and pastures – 0.15;

b) for arable land, hayfields and pastures located in mountainous areas and woodlands areas – 0.09;

c) for perennial crops (except for perennial plants, located in mountainous areas and woodlands areas) – 0.09;

g) for perennial plants, located in mountainous areas and woodlands areas – 0.03;

d) for the water areas – 0.45;

e) for arable land, hayfields and pastures, owned by agricultural producers who specialize in manufacturing (growing) and processing of crop production in greenhouses, or provided for their use, including for hire – 1.0.

Under the specialization at production (growing) and processing of crop production in greenhouses should understand the excess of income earned from the sale of such products and its processing of two-thirds of income (66 percent) from the sale of all produced agricultural products and processed products.

List of mountain areas and forest areas is determined by the Cabinet of Ministers of Ukraine.

The basic tax (reporting) period for tax is the calendar year.

Agricultural producers independently calculate the amount of tax each year as of 1 January and no later than 20 February of current year submit the appropriate state tax authority at the location of the taxpayer and the location of the land tax returns for the current year.

Tax payment should be made ​​monthly within 30 calendar days following the last calendar day of basic reporting (tax) month, amounting to one third of the amount of tax determined for each quarter of the annual amount of tax at the following rates: at the I quarter – 10 per cent at II quarter – 10 percent, at the III quarter – 50 percent; at IV quarter – 30 percent.