In Ukraine, the minimum land tax has been changed.

According to the changes to the Tax Code of Ukraine concerning taxation during the state of war, the minimum land tax is 700 hryvnias per hectare. For lands where arable land occupies at least 50% of the area, the minimum tax is 1400 hryvnias per hectare.

'This will increase the transparency of relations in the agrarian sector, preventing the underestimation of the tax burden and evasion of taxes,' it was stated in the Ministry of Agrarian Policy.

Beginning January 1, 2025, and until the end of the state of war, a raised coefficient 'K' (0.057) will be applied to calculate the minimum payment for land tax.

According to lawyers, such changes do not allow for a correct calculation of the minimum land payment as they do not take into account real factors of land profitability. Moreover, the law requires amendments to the methodology for evaluating land value, particularly considering the impact of climate change. Lawyers believe that this violates the principle of separation of powers provided by the Constitution of Ukraine.

When determining the minimum payment for land tax for the year 2025 and subsequent years until the end or abolition of the state of war, coefficient 'K' at the level of 0.057 will be used, which is an increase compared to the current level of 0.05.