What is the indexation coefficient of the normative monetary valuation of land for 2021 used in the calculation of tax liabilities for land payment for 2022 for agricultural land that is not related to agricultural lands?

Sub-paragraph 271.1.1 Paragraph 271.1 Article 271 of the Tax Code of Ukraine № 2755-VI as of 02.12.2010 with changes and amendments (hereinafter – TCU) stipulates that taxation base for land plots, normative monetary valuation (hereinafter – Valuation) of which is carried out, is their valuation taking into account the indexation coefficient determined according to provisions of the TCU. Tax liabilities for such plots are determined using the land tax interest rates, limits of which are defined in Article 274 of the TCU.

For land plots that have not been evaluated, including for land plots outside settlements that are not agricultural lands, the limit indicator of taxation base is the unit of arable land area in a region and in order to determine tax liabilities for such plots the land tax interest rates are used, maximum limits of which are defined in Article 277 of the TCU.

According to the Letter of the State Service of Ukraine for Geodesy, Cartography and Cadastre № 6-28-0.222-275 / 2-22 as of 11.01.2022, the Valuation of agricultural land in 2022 is not indexed. At the same time, the Valuation of lands of settlements, including non-agricultural purposes is subject to indexation (value of indexation coefficient Kf – 1.1).

State Service of Ukraine for Geodesy, Cartography and Cadastre (letter № 6-28-0.222-275 / 2-22 as of 11.01.2022) guided by norms of Article 289 of the TCU, as well as Paragraph 9 of Sub-section 6 Section XX "Transitional Provisions" of the TCU, informed about application of indexation coefficient of Land Valuation in the amount of 110 percent according to results of 2021 for lands that do not belong to agricultural lands.

As follows, if lands of business entity do not belong to agricultural lands – for calculation of tax liability for the land payment for 2022, the value of indexation coefficient 1.1 is used to the base value of the Valuation, determined according to Article 277 of the TCU.

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