According to the Tax Code of Ukraine – specifically subparagraph 14.1.147, the land fee is part of property tax and includes two types of payments: land tax and rent for plots that are in state or municipal ownership.
Land tax
According to paragraph 269.1 of the Tax Code of Ukraine, the taxpayers of the land tax are the owners of land plots, shares (parts), and land users who have the right to permanent use of land plots of state or communal property. Thus, the land tax is paid only by those who own land or have the right to its permanent use.
Objects of taxation for land tax:
- Land plots that are privately owned.
- Land shares (parts) that are owned.
- Land plots of state and communal ownership that are in permanent use.
The tax base is the normative monetary valuation (NMV) of land plots taking into account the indexation coefficient, if the NMV has been conducted, or the area of the land plots if the NMV has not been conducted.
Data from the State Land Cadastre (SLC) may be used for the assessment of land tax. In the absence of data in the SLC, the following may be used:
- Data from the State Register of Real Property Rights.
- State acts confirming the right of ownership or permanent use of a land plot.
- Decisions of local self-government bodies regarding the allocation of land plots in kind to the owners of shares.
- Certificates for the right to land shares (parts).
- Other legal documents.
Rent payment
Rent is paid by individuals with whom the local authorities have entered into lease agreements for land plots owned by the state or the community.
It is noted that single tax payers are not exempt from paying rent for lands of state and communal ownership, although they are exempt from land tax (paragraph 297.1 of the Tax Code of Ukraine).
The object of taxation for rent is land plots owned by the community or the state, for which a lease agreement has been concluded. The executive authorities provide information about the tenants to the tax authorities by February 1, after which the obligation to pay rent arises from the moment of state registration of the lease agreement.
The amount of rent is determined in the contract, but the annual sum cannot:
- To be less than the amount of land tax: for lands for which the valuation has been conducted, no more than 3% of their valuation.
- For common use lands – no more than 1% of their normative monetary assessment.
- Agricultural land – from 0.3% to 1% of their total area.
- For lands where the NGO has not been conducted, it should not exceed 5% of the NGO per unit of arable land area in the region.
- Exceeding 12% of the NGO, unless the tenant is determined on a competitive basis.
- Exceed the amount of land tax for pastures with mountain status in settlements.
If the rental fee specified in the lease agreement is lower than the minimum allowable amount, the rent must be paid at the minimum allowable amount.
Submission of the land payment declaration
The basic tax period for land payment is the calendar year (paragraph 285.1 of the Tax Code of Ukraine). Taxpayers independently calculate the tax amount for the current year as of January 1 and are required to submit a declaration by February 20 of the same year.
The declaration form is common for both land tax and rent payment. However, if an agricultural enterprise is a payer of both payments, it must submit separate declarations for each of them.
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