The SPFU will strengthen control over the activities of property valuation market participants in Ukraine

The SPFU, as a state regulator in the field of property valuation, plans to strengthen control over the activities of valuators in Ukraine by improving the legal framework and monitoring mechanisms of the state resource "Unified Database of Property Valuation Reports".

Currently, the number of certified Ukrainian valuators is over 13 thousand. The Fund is responsible not only for training them, determining their level of qualification and granting them permission to carry out their professional activities, but also for monitoring the reports they submit to the Unified Database, which serve as the basis for calculating the taxation of personal income from the sale, gifts, inheritances of real estate and so on.

In the past six months, information on 175,668 sales and purchase agreements, mine contracts and other real estate transactions totaling UAH 96.3 billion was entered into the Unified Database, and more than 763,000 people used the service of the Unified Database of Reports, managed by the Fund.

"When concluding transactions by notaries with the real estate owned by individuals, a citizen can, using the means of the Unified Database of Valuation Reports, automatically determine the value of his/her real estate and get a Certificate of Appraisal Value of his or her real estate free of charge or seek the services of a valuator to determine its market value. Tax on the sale of real estate is paid on the basis of the Certificate or Valuation Report. Of course, there are cases when people try to minimize taxes. Such actions lead to manipulation of the Unified Database – when issuing a certificate or registering a valuation report. That is why we are implementing systemic measures, such as better legal regulation and increased responsibility of valuators," reports Svitlana Bulhakova, head of the Department of Property Valuation, Property Rights and Professional Valuation Activities of the SPFU.

The most common cases of unscrupulous work of participants in the valuation market:  

• manipulation of data about the real estate facility entered into the Unified Database (indication of false information);
• non-compliance by subjects of valuation activities (valuators) with the requirements of the law while working in the Unified Database (for example: failure to upload the valuation report to the Unified Database);
• significant underestimation of the value of real estate in the report, etc.

In order to prevent manipulation of the data and documents entered into the Unified Database, the Fund constantly monitors the data and documents (valuation reports) and takes appropriate measures against violators: 

At the same time, the Fund is on the way of improving the existing legislation regulating the work of the Unified Database of Valuation Reports:

• the draft law with amendments to Article 172 of the Tax Code of Ukraine has been developed, which is currently undergoing the approval procedure — the changes provide for improving the work of the Unified Database of Valuation Reports, which will improve the processes of automatic value estimation and the procedure for registering valuation reports;
• amendments to the regulatory acts have been developed regarding the strengthening of the responsibility of valuation entities and valuators during their work in the Unified Database, including the disconnection of violators from the Unified Database.

The SPFU constantly cooperates with international experts regarding the exchange of experience in valuation, as well as with the professional community and public organizations, in particular, with the NGO "Together Against Corruption" — in matters of preventing corruption risks in the field of valuation. Joint work with experts and support of the public is especially valuable for the Fund in terms of improving the legislation, therefore the Fund is always open to dialogue – as only joint efforts can lead to systemic changes.