The Ministry of Finance of Ukraine, in its letter No. 11230-09-62/3132 dated February 2, 2026, clarified that the minimum tax liability (MTL) to be accrued to a land user, in cases where the land plot was used for less than a full year, must be calculated proportionally to the number of months during which the land was in the user’s possession.

This means that if an individual or legal entity used a land plot where arable land accounts for more than 50%, the annual minimum payment should be UAH 1,400 per hectare. However, if the land was used for three months, the minimum MTL is calculated using the following formula: UAH 1,400 / 12 × 3 = UAH 350.

Accordingly, if arable land accounts for less than 50% of the land plot, the minimum MTL would be calculated as: UAH 700 / 12 × 3 = UAH 175.

It should be recalled that on August 25, 2025, the State Tax Service of Ukraine published letter No. 916/2/99-00-21-03-02-02, informing taxpayers that if a land plot was used for only part of the reporting year, the accrued minimum MTL should amount to UAH 1,400 or UAH 700, depending on the share of arable land, regardless of the duration of use.

The Ministry of Finance clarification, which eliminates double taxation, was issued following the review of an appeal by the Public Union “Ukrainian Agri Council” (UAC) at a working group meeting of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, chaired by Oleksandr Kovalchuk, Member of Parliament of Ukraine.

The Ukrainian Agri Council expresses its gratitude to Oleksandr Kovalchuk, Deputy Chairman of the Verkhovna Rada Committee on Finance, Taxation and Customs Policy, and Svitlana Vorobei, Deputy Minister of Finance, for promptly resolving the issue of double accrual of the minimum tax liability and for their active cooperation aimed at strengthening the agricultural sector.