On 21 August 2014, the Cabinet of Ministers of Ukraine adopted Resolution № 358 "On Conducting Valuation for Taxation Purposes and for Accrual and Payment of Other Mandatory Payments, Due and Payable under the Law" (the "Resolution").
The Resolution simplifies the procedure for valuation of property and property rights for taxation purposes.
The Resolution stipulates that from now on, instead of the special type of valuation of property for taxation purposes that was used previously, a property’s market value is considered the value used for taxation purposes and for accrual and payment of other mandatory payments.
The Resolution also cancels the valuators' monopoly on performing valuations for taxation purposes. Now a valuation for taxation purposes can be conducted by valuation service providers, having at least one valuator holding a qualificationcertificate with at least one of the following specializations: 1.1 - 1.7 (not 1.8, as before) or 2.1 - 2.2 (not 2.3, as before).
Earlier the valuation of property for taxation purposes could only beperformed by valuators holding a special certificate with specialization 1.8, 2.3 or 3 "The valuation for taxation purposes and for accrual and payment of other mandatory payments, due and payable under the law". Certificates with such specializations were available only to a limited number of valuators, which led to monopolization of valuation for taxation purposes.
The Resolution provides that a property’s market value is considered its value used for taxation purposes and for accrual and payment of other mandatory payments.
Moreover, the list of valuators authorized to perform the valuation of property for taxation purposes has been significantly extended. Accordingly, an increase in competition in the market is expected. As a result, this should simplify the procedure of valuing property for taxation purposes and hopefully result in a decrease in the price and speed up the process of valuation.