Land payment ranks third place in terms of the local budgets’ revenues of the Trans-Carpathian region, amounting almost 10% of the total revenues which is 101.5 million UAH. Growth compared to last year is 11.5 million UAH. This was reported by the Main Directorate of the STS in Ivano-Frankivsk region. As follows, land owners and tenants – legal entities paid 92.7 million UAH and land users – individuals - 8.8 million UAH to the local budgets over January-February 2020.
It should be reminded that the land payment is a compulsory payment in the form of property tax, which is collected in the form of land tax and rent for state and communal property. Land tax is paid by the owners of land and land units (shares) and rent is paid by the users – tenants of land belonged to state and communal property, which they use under the leasing agreements.
Land owners and land users are obliged to pay fee for the land from the date of the ownership or right to use the land. Basis for calculation of the land tax is the data from the State Land Cadastre. Tax base is the normative monetary valuation of land plots, taking into account the indexation coefficient which is determined in accordance with the procedure determined by the Tax Code.
The following categories are exempted from the land tax:
- disabled people of the first and second groups;
- individuals raising three or more children under the 18 years old;
- pensioners (by age);
- war veterans and individuals who belong to the Law of Ukraine “On the status of war veterans, guarantees of their social protection”;
- individuals recognized by the law as individuals who have suffered as a result of the Chornobyl disaster.
At the same time, the tax exemption for land plots shall be extended to land plots for each type of use within the limit boundaries:
- for personal peasant farm - not more than 2 ha;
- for construction and maintenance of residential house, farm buildings and structures (personal plot): in villages - not more than 0.25 hectares, in settlements - not more than 0.15 hectares, in cities - not more than 0.10 hectares;
- for individual cottage construction – not more than 0.10 ha;
- for construction of individual garages – not more than 0.01 ha;
- for gardening – not more than 0.12 hectares.
Individual who has grounds for receiving the land tax benefits must submit an arbitrary application form for granting privileges and documents proving his/her right to the privilege to the tax authority at the location of the land. Herewith, if individual uses the privileges owning several land plots of the same type of use, then such individual submits a written application in an arbitrary form to the controlling body at the location of the land plot for self-selection / change of the land plot for the application of the privilege by the 1st of May of the current year.
Privilege begins to be applied to the selected land plot from the base tax (reporting) period when such application is submitted.
Also, please note that the real estate tax exemptions other than land are envisaged due to the spread of coronavirus disease by the Law of Ukraine as of 17.03.2020 № 533-IX “On amendments to the Tax code of Ukraine and other Laws of Ukraine on support of taxpayers during the period of measures to prevent the occurrence and spread of Coronavirus disease (COVID-19)”. Specifically, for the period from the 1st March 1 to April 30, 2020 the land payments are not charged or paid by individuals or legal entities for land of state and communal ownership and for land, owned or used, including on lease terms used by them in economic activities.
This Law also stipulates that payers of the real estate tax other than land (individuals), which in accordance with Paragraph 286.2 Article 286 of this Code who submitted a tax declaration have the right to file a clarification tax declaration, which reflects changes in tax liability for respective months. Recalculation for individuals – payers of the real estate tax other than land will be made by the controlling body.