The PIT and military levy rate for such heirs is 10%
When inheriting property from persons who are not close relatives of the first or second degree of kinship, heirs must pay 5% personal income tax and 5% military levy. Tax obligations can be fulfilled either before notary registration of the property or during the annual declaration campaign. This was reported by Головне управління ДПС у Київській області, according to the portal PromPolitInform.
The State Tax Service notes that the degree of kinship directly affects the tax burden when receiving an inheritance. The category of distant relatives, from whom inheritance is subject to taxation, includes aunts, uncles, step-parents, great-grandparents, and cousins.
Tax rates and payment procedure
For Ukrainian residents inheriting movable or immovable property from such persons, the total tax burden is 10%. It consists of two equal parts: personal income tax and military levy, each charged at a rate of 5% of the inheritance value.
The legislation allows for paying tax liabilities before obtaining a certificate of ownership. If taxes are paid at the stage of notary registration, there is no need to file a separate annual declaration, as the notary will notify the controlling authorities about the settlement with the budget.
Income declaration
In case deductions were not made before the completion of notary actions, the heir is obliged to report the income received independently. To do this, one must submit an asset and income declaration by May 1 of the year following the reporting year.
The final deadline for paying tax liabilities calculated based on the declared data is set for August 1. Reporting can be submitted remotely via the Taxpayer Electronic Cabinet or by contacting a local tax office, which helps avoid financial penalties for legal non-compliance.
Photo: Спадщина від далеких родичів. Деталі оподаткування
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