Many people imagine renting out housing in rainbow colors - find a client through friends or a real estate agency in Kyiv , sign a contract and receive money. Yes, these steps are indeed present, but one should not miss another equally important nuance - the income from renting an apartment is taxed and goes to the state treasury.
This nuance makes some landlords hide their income, although this is a risky undertaking , given that the Tax Service may find out about this, and the unscrupulous owner will pay a fine. That's why let's look at what taxes you will have to pay when you rent out your home, so that you have an idea of u200bu200bwhat awaits you.
How do I report income and what percentage do I need to pay?
The amount of tax on renting an apartment depends on who rents it - an individual, an individual entrepreneur on a simplified taxation system, or an individual entrepreneur on a general system. The first category pays a personal income tax of 18%, as well as a military tax (1.5%). We can show this with an example: let's say renting an apartment for 10 thousand UAH. In this case, the owner will have to pay a tax on renting out an apartment in the amount of UAH 1,950.
The second category includes "unity owners" of groups 2 and 3, and they can rent out housing under certain conditions:
- there are restrictions on the area - no more than 400 sq.m.
- FOPs of the 2nd group can rent out housing exclusively to residents of Ukraine and legal entities that pay a single tax. Those who belong to the 2nd group pay 20% of the salary plus ERUs (22% of the salary). 5% of the total income and also ERUs.
As for the third category, then you need to pay such a tax - 18% of income, a military tax of 1.5% and ERUs. By the way, this is the most beneficial for the sublease format.
Terms and procedure for submitting statements to the tax office
Returning to general details, it is worth pointing out that the owner of the apartment must pay tax on renting an apartment once per quarter, and then submit a declaration, which will record the fact of renting the object. A real estate tax declaration is submitted by any legal entity that has residential or non-residential real estate at its disposal, and it is submitted at the location of the object.
When an individual rents an apartment to sole proprietorships, taxes remain fixed, but pay their tenant, who essentially turns into a tax agent. However, he can cover taxes through a monthly rental payment. This is another important point that is related to how to rent an apartment through the tax office and not miss any bureaucratic stage.
To pay or not to pay taxes is up to you, but still, when you decide to pay tax for renting an apartment, you automatically become a conscientious citizen of your country, and also save yourself from fines and unpleasant legal issues. Well, The Capital agency can help with questions related to renting elite apartments in Kyiv. Follow the link https://thecapital.com.ua/arenda- kvartir-v-kieve/ and trust the professionals. We will select the ideal apartments, you can view them at any time convenient for you, and then we will process all the necessary documents.
