Economical science/3. Financial relations

 

PhD. Poltorak A. S., Gavenko K. E., Ivanova I. V.

Mykolayiv National Agrarian University, Mykolayiv, Ukraine

 

The use of foreign experience in collecting taxes on real estate in Ukraine

The tax system of any country includes taxes, the object of which, in particular, is movable and immovable property. Legislative establishment of the tax on real property vary from the land in Ukraine is one of the issues which has a strong value for the effective local budgets replenishment and adaptation of national legislation to European standards. In developed foreign countries, an important part of the tax system is the taxation of real property, which performs various targets and functions in the state and influence on solving social and economic problems, especially at the local level.

It should be pointed out that the introduction of tax on real property is differ from the land in Ukraine and should became one of the main sources of financial stability of local government.

The taxation of real property was actively studied by modern foreign economists: R. Bonza, B. Maklennonta, L. Harris [1-2] and Ukrainian scientists: A. Berezhnaya, V. Vishnevsky, I. Krunutskiy, M. Carlin [3-6].

Real property tax as a tax on ownership of real estate is one of the oldest type of taxes, which is well-known to financial science. Tenure of real estate wealth has long been considered as a sign of wealth people. The first mention about property tax was found in the chronicles describing Khazar fees from slavic people in the form of tribute. Today, the property tax is the basis of property tax in a big part of European countries. In Ukraine, this tax was proposed in the 90's and is reflected in the first legislative acts, but the mechanism of its administration in Ukraine wasnt developed because it was not introduced. Firstly, the property tax was considered to be a federal tax, and lately has been already embodied as a local tax in the Tax Code of Ukraine [7].

Tax on real estate in international practice is treated as a revenue earner of local budgets. For example, in the UK the only Western country, property taxes provide 100% of local budgets.

Systems of real estate taxation in each country differ in their characteristics. For example, in Hungary the system of property tax consist of a land tax, tax on buildings and tax on real estate acquisition, accordingly, what is more, property and transactions with it are also a subject to taxation [8, p. 71-72, 86, 159-160].

In Chinese tax system, local taxes include taxes on urban real estate. This tax is outlined among others because the tax obligation arises only in case with immovable property located within the city. The taxpayers are the owners of these objects, while there is no distinction between natural and legal persons, national and foreign participants of tax relations.

In Brazil, as well as in China, there is a tax on urban property, but it is supplemented by local tax receipt lifetime property. Payers of this tax are peoples with ownership or have the right to own and to use real estate in the city.

In the US taxation of real estate is carried at the state level. Accumulated funds are distributed among municipalities (cities), school and special districts.

France classic property tax covers various types of real estate, and the use of the property in professional activities, is not expected in Ukraine. Local property taxes are presented by, professional tax, tax on housing, land tax on undeveloped land, allowances for land taxes, land tax on built-up areas. Taxpayers are legal entities, although a certain amount is pied and individuals. That fact, that rich people should pay additional tax positively effects on the political atmosphere in the country [6]. In our view, this approach would be appropriate to introduce in Ukraine to expand taxable real estate and include to it the valuable property.

Thus, the taxation of real property differs from the land in Ukraine and requires improvement. The experience of foreign countries shows that a significant source of local budgets is a tax on real estate. The introduction of modern, socially, economically efficient property tax legislation will allow Ukraine to adapt to European standards and provide the increase revenues to local budgets. Also, it is need to match the rules of land laws and regulations of the laws governing property tax. The work of competent authorities should be responsible to levy tax on real property differ from the land, to ensure planned revenues amounts to local budgets.

Literature

1. Barbara N. Maklennon, Richard E. Bonz Taxation of real estate: principles and practical use [Electronic resource]. Access: http://www.geomatica.kiev.ua

2. Maklennon B. N. Standpoint on the taxation system of land in Ukraine: Proceedings of training workshops / B. N. Maklennon, R. E. Bonz 1999.

3. Vishnevskiy V. P. Taxation of real estate: Theory and International Experience / V. P. Vishnevsky, V. D. Chekina // Finance of Ukraine. 2007. 11. P. 4352.

4. Berezhnaya A. Y. Estate tax as a potential source of local budgeting / A. Y. Berezhnaya // Scientific Herald of building. 2006. 35. P. 294303.

5. Krynytskyi I. E. Legal regulation of property taxation: Synopsis of a thesis. Cand. Sc.: 12.00.07 / I. E. Krynytskyi; Nat. Legal. Acad. Ukraine of Y. Wise. Kharkiv, 2001. 20 p.

6. Carlin M. I. Estate tax in OECD countries and in Ukraine: history and present days / M. Carlin // Scientific notes. Series "Economics". 2013. 21. P. 163169.

7. Tax Code of Ukraine: The Law of Ukraine / Verkhovna Rada of Ukraine of 02.12.2010. 2755-VI [Electronic resource]. Access: http://zakon2.rada.gov.ua

8. Berezin M. U. Evolving the system of property taxation / M. U. Berezin. Moscow : Ynfotropyk Media, 2011. p. 482.