Parliament approves changes in budget and tax codes concerning forestry of Ukraine

On November 23, the Verkhovna Rada of Ukraine passed the State budget of Ukraine for 2019 year and made a number of changes to the tax and budget codes, in particular, concerning the forestry of Ukraine.

On financing of forestry and hunting economy, in particular, for southern and eastern regions of Ukraine

Draft law of Ukraine "on the state Budget for 2019 year" (register. № 9000), it is expected to increase the expenditures of special Fund of the State budget under the program 2805060 "maintenance of forest and hunting economy, protection and protection of Forests in the Forestry Fund" at 288 million hryvnias at the expense of 26% rent fee in Part of the wood is harvested in the order of the main use of forest and hunting economy.

Also from 2019 year will be an increase in the rate of rent fee for the special use of forest resources at 50%.

Draft law on amendments to the Budgetary code of Ukraine (registry. № 9084) The budget code of Ukraine changes, which regulates the issue of funds from the Special Fund of the State budget.

Yes, part three of article 29 will be supplemented with paragraph 13-4 of the following content:

«13-4) 26 per cent of annuity for special use of forest resources in the part of wood, harvested in the order of main use;

Part of the fourth article 30 will be supplemented with paragraph 15-1 of the following content:

"15-1" of forest and hunting economy, protection and defense of Forests in the Forestry Fund (due to the sources specified in paragraph 13-4 of the third article 29 of this Code).

 

Regarding land tax on forest land

The Parliament adopted the draft law on amending the tax code of Ukraine and some other legislative acts of Ukraine on improving administration and reviewing individual taxes and charges (registry. № 9260), which amended the tax code of Ukraine regarding land tax on forest land.

Thus, paragraph 274.1 of article 274 of the tax code of Ukraine "land tax rate for land plots, the regulatory valuation of which was conducted (irrespective of the location)" will be supplemented by the words ", and for forest land no more than 0.1 percent of their Standard pecuniary valuation.

To paragraph 277.1 of article 277 of the tax code of Ukraine to reduce the bid for forest land, which do not have monetary valuation, is also paid a supplement, namely: "But for forest land is not more than 0.1 percent of the normative pecuniary estimation of the unit area of arable Autonomous Republic of Crimea or the region.

Thus, the pond for forest land will be limited to a size not up to 5%, as stated in the current norm of the tax code, and only up to 0.1%.

In addition, the draft law of Ukraine "on amendments to the tax code of Ukraine and some other legislative acts of Ukraine to improve administration and view the rates of individual taxes and charges" (register. № 9260) Amendments to the tax code of Ukraine in the area of taxation of forest land. In particular, points 10.2 and 10.3 in article 10 will be supplemented with the words "except land tax for forest land and land tax."

Thus, local councils will be able not to set a bet (percentage) land tax on the forest land.

After signing the above-mentioned bills, the President of Ukraine and their publication will become effective on January 1, 2019.