Intermediation in the real estate rental market involves more than just helping find tenants or drafting contracts. Legislation imposes a number of duties on realtors, particularly regarding the notification of tax authorities about rental agreements concluded with their participation.
Pursuant to subparagraph 170.1.6 of clause 170.1 of the Tax Code of Ukraine, business entities engaged in intermediation activities in the sphere of real estate rental are required to submit information on concluded civil-law rental contracts to the controlling authority at their place of tax registration. Such information shall be submitted within the timeframes established for filing the tax return, using the form approved by the Ministry of Finance of Ukraine.
The form for submitting the relevant information was approved by the Order of the Ministry of Finance of Ukraine dated 13.05.2017 No. 497. This requirement applies to all business entities providing realtor services, regardless of their organizational-legal form or taxation system.
Submitting such data is an important element of tax control, as it facilitates proper accounting of taxpayers’ income, aimed at monitoring the accuracy of calculation, completeness, and timeliness of tax and fee payments from real estate rentals, and ensures timely fulfillment of tax obligations.
At the same time, liability for failure to submit, late submission, or violation of the established order for submitting information is provided for in accordance with Art. 119¹ of the Tax Code of Ukraine.
The Main Directorate of the State Tax Service in Kyiv region recommends that business entities engaged in realtor activities timely fulfill tax legislation requirements. This will help avoid penalties and ensure transparency in the real estate rental market.
Photo: Ріелтерська діяльність і податки
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