Owning a land plot today is not only a benefit but also a responsibility — including the annual payment of the Minimum Tax Liability (MTL).
Introduced on 1 January 2022, this tax must be paid by every landowner or legal user of agricultural land, regardless of whether income is generated from its use.
Serhii Maksymenko, Chief Specialist of the Land Relations Department at NIBULON, explains how this tax is calculated, paid, and reported.
Arе all land shares in Ukraine subject to MTL?
Yes. Since the concept of land shares (also called pai) originates from the distribution of agricultural land previously held in collective ownership, MTL is calculated annually for each land share — regardless of who uses the land or how it is used.
Who calculates MTL and when?
The State Tax Service of Ukraine in your region calculates MTL by the end of May following the reporting year. A Tax Notice-Decision (TND) is sent to each landowner by the end of July, and payment must be made within 60 days of delivery — typically by the end of September.
Does a landowner have to pay MTL if the land is leased to NIBULON?
No. Unlike situations involving individual farmers or informal (i.e., “grey zone”) land use, NIBULON pays all relevant taxes during the term of a valid lease agreement. If the land is officially leased to NIBULON, any tax notices sent to the landowner must not be paid — the company covers all related obligations.
Example:
Maria Petrivna from Velyki Korovyntsi owns a 2.7-hectare plot leased to NIBULON from 01.01.2022 to 01.01.2032. In August 2025, she receives a tax notice requesting a UAH 5,000 payment for MTL.
However, since the land is under a valid lease with NIBULON, which pays all applicable taxes as per the agreement, this TND is invalid. Maria Petrivna owes UAH 0.00 in 2025 — and for all other years while the lease remains in force.
Need assistance?
If you have questions about lease relations or land ownership transfer, contact your local NIBULON representative Monday–Friday, 08:00–17:00.
- Zhytomyr & Vinnytsia regions: +38 (075) 372 27 98 | mishchenko.l@nibulon.ua
- Cherkasy & Sumy regions: +38 (050) 394 75 18 | lubiana.a@nibulon.ua
- Mykolaiv & Odesa regions: +38 (063) 592 2088 | kolesnyk.o@nibulon.ua
- Khmelnytskyi region: +38 (098) 766 86 95 | morhush.v@nibulon.ua
