Photo: depositphotos
Ukrainian homeowners who rent out property without declaring the income and paying taxes could face fines ranging from Hr 51,000 to Hr 85,000, while large-scale tax evasion may result in criminal proceedings, according to the State Tax Service's office in the Poltava region.
The tax authority said penalties apply when authorities establish that a landlord has deliberately failed to pay taxes on rental income.
In addition to financial penalties, violators must pay all outstanding taxes, as well as any accrued interest and other charges. Tax officials may also launch further inspections and reassess the taxpayer's liabilities.
Under Ukrainian law, individuals earning income from residential property rentals must pay 18% personal income tax and a 5% military levy. Rental income must also be reported in an annual income and assets declaration.
