Reforms Index 163: A Unified Electronic System in the Area of Construction and Tax Amnesty

Procedures for the Unified State Electronic System in the area of construction, +2.0 points

Building real estate and putting it into service is a complex process. Obscure and long bureaucratic procedures laid the groundwork for corruption for years. To address these issues, the government decided to create the Unified State Electronic System in the area of construction. The system is meant to provide the services of obtaining the necessary documents at all stages of construction work using the “single window” on the Diia website portal.

In 2019, the Verkhovna Rada passed the law obligating the government to create this electronic system (Reforms Index 122). In June 2020, the government launched a pilot project of creating a unified database in the sphere of construction. To get the system to work efficiently, the government had to change some procedures required for the registration of construction. (Reforms Index 142).

Based on the pilot project results, the government put the system into operation. 

The law on the sale of land via electronic auctions, +2.0 points

Land in state or communal ownership can be sold or leased only through auction. However, the bidding process required that potential buyers be physically present at the premises where the auction was held. This considerably narrowed the number of potential participants. 

Law 1444-IX stipulates that electronic auctions be held to sell or hand over the land in state or communal ownership.

Land auction organizers will hold them in real-time in an online electronic trading system. Based on the auction results, the landowners’ representatives and the auction winners will conclude sale and purchase, lease, and superficies or emphyteusis agreements.