Parliament tightens tax on rapid car resale

New tax rates for rapid resale

The Verkhovna Rada of Ukraine has adopted bill No. 16037-d, which strengthens taxation on operations involving the rapid resale of motor vehicles. The document was adopted in the second reading and as a whole. Under the new rules, if an individual sells a car within 183 days of its state registration, they must pay personal income tax (PIT) at a rate of 18%. In addition, a 5% military levy is charged.

Changes compared to the previous procedure

Previously, the rules in force provided that the first sale of a passenger car, motorcycle, or moped within a calendar year was exempt from PIT payment, regardless of how long the vehicle had been in the seller's ownership. This benefit did not take into account the period of car ownership.

Conditions for a second transaction within the year

In the case of a second sale of a passenger car, motorcycle, or moped within one year, the PIT rate remains at 5%. However, this reduced rate applies only on the condition that the vehicle has been in the individual's ownership for at least 183 days.