If taxpayer is on the simplified taxation system (single tax of Group III), such taxpayer is exempted from obligation to accrue, pay and submit tax reporting on property tax in part of land tax for land plots used, in particular, by taxpayers of the single tax Group III for conducting economic activities (except for activity of providing land plots and/or real estate located on such land plots for lease, loan, other usage right) (Sub-paragraph 4 Paragraph 297.1 Article 297 of the Tax Code of Ukraine).
Article 3 of the Economic code of Ukraine defines that economic activity is activity of economic entities in public production sphere, aimed at production and sale of products, performance of works or provision of services of a valuable essence, which have a price determination.
Therefore, if taxpayer does not carry out economic activities on the land plot, then taxpayer has an obligation to declare and pay land tax for such land plot on the general grounds.
Along with this, please pay attention to the fact that temporarily for a period from August 1, 2023 until termination or cancellation of martial law on the territory of Ukraine, introduced by Decree of the President of Ukraine "On the introduction of martial law in Ukraine" № 64/2022 as of 24.02.2022, approved by the Law of Ukraine "On approval of Decree of the President of Ukraine "On the introduction of martial law in Ukraine"" № 2102-IX as of 24.02.2022, in case of self-correction by the taxpayer, according to procedure, requirements and restrictions specified in Article 50 of the Tax Code of Ukraine, of errors that led to understatement of tax liability, such taxpayer is exempted from accrual and payment of fines and financial sanctions provided for in Paragraph 50.1 Article 50 of the Tax Code of Ukraine (Sub-paragraph 69.38 Paragraph 69 Sub-section 10 Section XX of the Tax Code of Ukraine). *
* Changes to the Tax Code of Ukraine were made by the Law of Ukraine "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding taxation peculiarities during the martial law" № 3219-IX as of 30.06.2023.