More than 2,000 spectators gathered for an online seminar "All about the bill 5600 in the context of AGRO." Experts Mykhailo Sokolov and Dmytro Kokhan from an advisory center “Smart Country” told about details on implementing of minimal tax liability (MTL) provided for in the bill, dispelled myths about the document and answered questions from participants.

"The key innovation of the bill for the agricultural sector is the introduction of a minimal tax liability in Ukraine. This is the minimum to be paid from 1 hectare of cultivated land. This minimum is equal to 5% of normative monetary evaluation (NME) of land, and for the transition period (2023-2024) is 4%. For family farming business MTL will be 0% for the transition period and 2% after it from NME” Mykhailo Sokolov explained.

Another important innovation which is provided by the bill is that the person who directly uses the land is responsible for paying MTL. So, if the land is leased, the official tenant is responsible for paying taxes. If the cultivates the land himself, the responsibility rests with him. Also, the owner of agricultural products is credited with personal income tax (PIT), which he pays when receiving income from the sale of agricultural products.

In addition, Mykhailo Sokolov focused on the amendments that were adopted before the second reading of the bill, and included in its final version. In particular regarding:

• crediting income tax to the amount of paid taxes in comparison with the MTL;
• crediting PIT to the amount of taxes paid;
• PIT benefits for individuals;
• benefits from MTL for individuals;
• problems of calculation of MTL for land plots owned by legal entities, state or municipal property;
• issues of inflated NME;
• determination of the territorial community, to the budget of which there is a surcharge with MTL payers of a single tax of the 4th group, etc.

More details about changings by the bill 5600 you can learn from the video: