Farm Enterprises Face Double Assessment of Minimum Tax Liability
Farm enterprises that utilize land under the right of permanent use are facing the issue of double assessment of the minimum tax liability (MTL). In 2026, farmers are receiving the first tax notifications, prompting them to widely contest such assessments.
This is reported by AgroReview
Issues with Registry Records and Tax Risks
According to Yaroslava Ovcharenko, a legal support expert from the All-Ukrainian Congress of Farmers, the lands of permanent use are fully utilized by farm enterprises and are indicated in their financial reports. At the same time, the enterprises duly pay taxes that should cover the MTL requirements. However, the State Tax Service of Ukraine relies on the data from the registry of property rights.
“The state act is issued to an individual — the founder or member of the enterprise — and the tax service, based on the records in the property rights registry, additionally assesses the MTL to that individual. This creates duplication: the same plot generates a tax obligation for both the legal entity and the individual,” explained the expert.
Ovcharenko emphasizes that the tax service, in its individual consultations, refers to the absence of a record in the property rights registry regarding the transfer of rights to the farm enterprise. As a result, the obligation to determine the MTL, in the opinion of the tax authorities, falls personally on the founder or member of the enterprise.
Similar Issues with Leased Land Plots
A similar situation arises with leased land shares. If the owner of the share dies while the lease agreement is still in effect, the tax authority begins to assess the MTL to the heirs. This occurs even in cases where the land plot is accounted for in the reports of the farm enterprise and the corresponding taxes have already been paid. This was noted by a farmer from Volyn, Yuriy Mykhaleць.
The All-Ukrainian Congress of Farmers calls for amendments to Article 38 of the Tax Code of Ukraine. In particular, it is proposed to clearly establish that the MTL is assessed and paid by the legal entity — the farm enterprise — regardless of the presence of a record in the state registry regarding the registration of rights for the enterprise. Such an initiative should prevent double assessments even in cases where the registration of rights has not yet been completed.