Quite often, the taxpayers have a question: when is it necessary to submit to controlling authorities extract from technical documentation on the normative monetary valuation of a land plot?
State Tax Service reports that the Tax Code of Ukraine (hereinafter – Code) (Paragraph 286.2 Article 286 of the Code) defines only two cases when the taxpayer submits to the controlling authority extract from technical documentation on the normative monetary valuation of a land plot, namely:
- during submission of the first declaration by the payer (actual start of activity as the land tax payer) and
- in case of approval of a new normative monetary valuation of land.
Herewith, Ukrainian legislation does not limit owner and/or user of the land plot in frequency of receiving such extracts, however, tax legislation establishes a rule for their application to determine the land tax liability.
When are the figures extracted from technical documentation on the normative monetary valuation of the land plot used to determine the land tax liability?
The taxpayer must use new data on the normative monetary valuation of the land plot to calculate the land tax from the moment such data comes into force.
Entry into force of decisions of councils on establishing the normative monetary valuation of land plots is regulated in Article 271 of the Code.
Local self-governments make a decision to update/establish the normative monetary valuation of land plots, which is published by relevant local self-government body by July 15 of year preceding the budget period in which the normative monetary valuation of land or changes are planned to be applied (planning period).
Otherwise, norms of relevant decisions are applied not earlier than the beginning of budget period following the planning period.
However, provisions of the Code regarding entry into force of decisions do not apply to decisions of councils:
regarding the normative monetary valuation of land plots of state and municipal property located outside settlements that are leased,
normative monetary valuation of which has not previously been carried out and/or has not been approved according to procedure established by the law, and provided that size of such normative monetary valuation of land plots exceeds size of the normative monetary valuation of the corresponding area of arable land in a region.
Such decisions of councils are published by the local self-government body not later than 10 days from the date of adoption of relevant decision and are applied from the first day of the second month following the month of adoption of such decision.
State Tax Service notes that currently a common mistake in determining the land tax liabilities is receipt and application by the taxpayers of extracts on the amount of normative monetary valuation of lands according to the Methodology for normative monetary valuation of land plots, approved by Resolution of the Cabinet of Ministers of Ukraine № 1147 as of 03.11.2021 (hereinafter – Resolution № 1147) for lands for which after 2021 a decision was not made and published by local self-government body on the approval of new technical documentation on the normative monetary valuation of lands.
Use of such extracts can lead to both underestimation and overestimation of the land tax liabilities.
At the same time, Paragraph 4 of Resolution № 1147 establishes that technical documentation on the normative monetary valuation of land plots, approved taking into account requirements of Paragraph 271.2 Article 271 of the Code before entry into force of the Methodology approved according to Paragraph 1 of this Resolution, technical documentation on the national (all-Ukrainian) normative monetary valuation of agricultural lands (in relevant territory) is valid until the start of application of decision of relevant local self-government body on the approval of new technical documentation on the normative monetary valuation of land plots.