en
Barter transactions and land taxation
Barter transactions and land taxation
We hereby inform you that “Barter” refers to the exchange of goods (works or services). In such transactions, an individual or legal entity provides goods (works or services) in return for the goods (works or services) received, instead of monetary payment.
According to Article 218.4.5 of the Tax Code, individuals who transfer land plots they own are considered payers of the simplified tax.
No tax is levied on the transfer of land plots in the following cases:
• when the land plot is transferred as a gift, financial assistance, or inheritance to family members;
• when the land plot is transferred between spouses or during divorce proceedings between former spouses;
• when the land plot is acquired for state needs.
When an individual transfers a land plot, a simplified tax is withheld at the source of payment by a notary, at the rate of 0.5 manats per square meter of land, with coefficients applied depending on the location of the land as defined by Article 220.8 of the Tax Code. For agricultural land plots, the simplified tax is calculated at twice the amount of the land tax established under Article 206.1-1 of the Tax Code.
As specified in Article 206.1-1 of the Tax Code, the rate of land tax for agricultural land is set at 0.06 manats per conditional point.
We hereby inform you that “Barter” refers to the exchange of goods (works or services). In such transactions, an individual or legal entity provides goods (works or services) in return for the goods (works or services) received, instead of monetary payment.
According to Article 218.4.5 of the Tax Code, individuals who transfer land plots they own are considered payers of the simplified tax.
No tax is levied on the transfer of land plots in the following cases:
• when the land plot is transferred as a gift, financial assistance, or inheritance to family members;
• when the land plot is transferred between spouses or during divorce proceedings between former spouses;
• when the land plot is acquired for state needs.
When an individual transfers a land plot, a simplified tax is withheld at the source of payment by a notary, at the rate of 0.5 manats per square meter of land, with coefficients applied depending on the location of the land as defined by Article 220.8 of the Tax Code. For agricultural land plots, the simplified tax is calculated at twice the amount of the land tax established under Article 206.1-1 of the Tax Code.
As specified in Article 206.1-1 of the Tax Code, the rate of land tax for agricultural land is set at 0.06 manats per conditional point.