The owners of the cars will have to pay huge taxes when you sell

6 Feb Rada of Ukraine unblocked the signing of the law with the amendments to the Tax code that include provisions of transfer pricing, the introduction of the BEPS action plan to combat tax evasion and increase the number of rent rates

Собственникам машин придется платить огромные налоги при продаже

This act 1210 includes, in particular, a new procedure for calculating tax on car sales, reports Wave.

Now, compared to in force to the present day rates, the fee will increase significantly.

The notorious law № 1210, which has already been dubbed a “tax terror”, significantly changed the procedure for calculation of tax on vehicle sales.

Innovation concerns any kind of vehicles — from mopeds to buses and tractors.

So, the act offered a new three-step formula:

· on the first sale of the vehicle in the course of the year the owner pays no taxes;

· in the second sale during the year rate will be 5% (of the appraised value of the vehicle);

· the third sale — 18% (of car value) plus 1.5 percent military duty, that is only 19.5 percent.

For example, if the value of the car is 10 thousand dollars, when the third sale of such a vehicle tax will be about 2 thousand dollars.

New taxes aimed at domestic dealers engaged in the resale of vehicles, as well as those who often fetches Used Cars for sale  from abroad.

This law, “public servants” are going to force such business to be legalized by paying high taxes, and create legislative field for trade in second-hand cars through specialized companies and car dealerships.

At the same time, the services of such companies is disadvantageous to ordinary motorists, because, as a rule, companies in the buyout are trying to assess far below market value and sell it expensive.

Basically, they accept people who urgently need money.

It should be noted that this law will enter into force after it is signed by the President and will be published in the official media.