Reduction in the rate of land and property taxes on hotels for entrepreneurs by 90%

Presidential Decree “On Additional Measures for the Development of the Services Sector” (PD No. 104, January 27, 2022) was adopted.

Pursuant to the decree, priority areas on the development of services sector were identified.

What is more, entrepreneurs from January 1, 2022 to January 1, 2027 on hotels and shopping malls with an area of more than 5 thousand square meters will have the following privileges:

• land tax and property tax rates will be abated by 90%;

• the value of the buildings is deducted as depreciation expense for 2 years In calculating the income tax;

From April 1, 2022 to January 1, 2025 for entrepreneurs providing catering, hotel, trade, entertainment, tour operator and travel agent services in 28 districts and cities:

• turnover tax - 1%;

• property and land taxes are set at 1 percent of the assessed amount.

Furthermore, from July 1, 2022 will be introduced a procedure for the electronic online auction of land plots for the construction of tourism facilities in these districts and cities.