Inheritance tax: what to pay tax for

Legislation provides, what inherited apartment in Odessa must be subject to income tax. Inheritance tax is paid directly by the person, who inherits this property.

By issuing a certificate of inheritance, notary, who designed it, is obliged to notify the tax authorities about the receipt of the inheritance. Then, the tax authority sends to the heir a payment notice on the payment of income tax. The deadline for the payment of inheritance tax is established within three months from the date of receipt of this notification.

Based on the legislation of Ukraine on taxes, three types of income tax rates are applied to inherited property.

1. Bid - 0%. This tax rate applies, if the property is received by the heirs of the first line. Such persons include: parents, children (adopted children), husband and wife, parents of husband and wife, children of husband and wife. Any property also qualifies for the zero rate, which was inherited by such categories of citizens – disabled 1 group, orphans, and children deprived of parental care.

2. Bid - 5%. The five percent tax rate is borne by the heirs, who have a second or more degree of kinship. Non-relatives are also subject to this rate., who pay the appropriate amount of tax on an equal basis with relatives of all queues of kinship.

3. Bid - 15 %. Installed in cases, when inheritance is received from a non-resident. At the same time, the degree of kinship does not matter for determining the percentage of the income tax rate..

To inheritance, which is taxable, relate: any immovable and movable property, sums, which are reimbursed under insurance contracts, retirement, cash and non-cash funds, various property and money certificates, commercial property.

If inherited property is received in monetary terms, then there are no problems with determining the amount of tax. With regard to real estate, then the amount of income tax is determined by the value, which is specified in the contract, but not from its market value.

When inheritance tax is not paid on time, the tax authority sends the taxpayer the tax claims to pay off the tax. Tax authority from the first day of delay for non-payment of tax, and for each day it counts a penalty until the obligations are fully fulfilled, and also applies penalties, which are regulated by law and are fully legal.