The Verkhovna Rada of Ukraine adopted in the second reading the draft law №0940 “On amendments to the Tax code of Ukraine regarding the taxation of inheritance and clarify certain provisions.”
Voted 278 deputies at minimum necessary 226 votes.
The document simplifies the procedure of registration of inheritance for the relatives of the deceased. So, zero inheritance tax is now set not only for the heirs of the first degree of consanguinity and the second degree. Until the law came into force, brothers and sisters, and grandparents, both from father’s and mother’s side, and grandchildren pay 5% tax for probate.
“The problem arises in probate in rural areas, where payment of tax for the receipt of property by inheritance and the fee for the assessment of property is many times more than the real value of such property,” – noted in the explanatory Memorandum.
In addition, to the heirs of the second degree of consanguinity will not be eligible for tax valuation of inherited property.
The law also clarifies the procedure of taxation of gifts. Gifts to relatives first-degree relatives is also not taxed.
We will remind, the law in the first reading was adopted in 2014.