Land tax taxation peculiarities

Article 269 of the Tax Code of Ukraine (hereinafter – TCU) stipulates that the land tax payers are owners of land plots, land shares (parts), land users who, according to the law, have been granted the use of land plots of state and communal property with permanent use rights; rent payers are land users (tenants) of land plots of state and communal ownership on the lease terms.

Subject of land tax is land plots that are owned, land shares (parts) that are owned, land plots of state and communal property that are owned with the  permanent use right and land plots of state and communal property, provided for use on the lease terms (Article 270 of the TCU).

Tax is paid by individuals within 60 days from the date of delivery of tax notification-decision (Paragraph 287.5 Article 287 of the c).

At the same time, the 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 the approval of the Decree of the President of Ukraine "On the introduction of martial law in Ukraine"" № 2102-IX as of 24.02.2022 stipulates that temporarily, for a period until termination or abolition of the martial law on the territory of Ukraine collection of taxes and levies is carried out taking into account peculiarities specified in Sub-paragraph 69.1 Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the TCU.

Sub-paragraph 69.1 Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the TCU stipulates that in case that that the taxpayer does not have opportunity to fulfill tax obligations in a timely manner, in particular, regarding compliance with deadlines for paying taxes and levies, submitting reports, etc. – such taxpayers are exempted from the responsibility provided for by the TCU with mandatory fulfillment of such obligations during six months after termination or abolition of the martial law in Ukraine.

Order of the Ministry of Finance of Ukraine № 225 as of 29.07.2022 "On approval of Procedure for confirming possibility or impossibility of the taxpayer's performance of obligations specified in Sub-paragraph 69.1 Paragraph 69 Sub-section 10 Section XX "Transitional provisions" of the TCU and lists of documents entered into force on 06.09.2022 for confirmation", registered in the Ministry of Justice of Ukraine on 25.08.2022 under № 967/38303 (hereinafter – Procedure).

Paragraph 3 Section II of the Procedure stipulates that to the taxpayers, including in relation to their branch, representative office, separate or other structural subdivision, who, on the date of entry into force of this Procedure, have opportunity to submit to the supervisory authority an application and documents (copies of documents), information about the inability to fulfill tax obligations, the following rules are applicable.

In case that the taxpayer is unable to fulfill tax obligation, the taxpayer submits not later than September 30, 2022, an application on the lack of such opportunity with an exhaustive list of documents (copies of documents), information provided for in the List of documents confirming impossibility of the taxpayer – individual, in particular a self-employed individual to timely fulfill tax obligation, including obligation of tax agent, approved by the Order of the Ministry of Finance of Ukraine № 225 as of 29.07.2022 to the supervisory authority in manner provided for in Paragraph 8 Section II of the Procedure.

If the taxpayer does not have opportunity to submit such application and relevant documents (copies of documents) not later than September 30, 2022, the taxpayer must submit application and relevant documents (copies of documents) simultaneously with the acquisition of opportunity to fulfill one of tax obligations (tax registration invoice, submission of reports, payment of unpaid tax liability, etc.) by such taxpayer, provided for by the TCU or other legislation, control over the implementation of which is entrusted to the supervisory authority, but not later than 60 calendar days from the first day of a month following the month of renewal of such possibilities of the taxpayer (Paragraph 4 Section II of the Procedure).

Taxpayers, who on the date of entry into force and after the date of entry into force of the Procedure, fulfilled their tax obligations, but due to the military aggression of the Russian Federation lost opportunity to fulfill them, submit an application and relevant documents within 60 calendar days from the first day of a month, following the month of renewal of the taxpayer's opportunities (Paragraph 6 Section II of the Procedure).

Please note that tax legislation gives taxpayers a right to apply in writing or in electronic form by the electronic communication means (in compliance with requirements specified in Paragraph 42.4 Article 42 of the TCU) to the supervisory authority at their registration in the supervisory authorities or at the location of land plots, including right on which an individual has as the owner of a land share (part), for reconciliation of data on the size of area and number of land plots, land shares (parts), owned and/or used by the taxpayer, right to benefit from tax payment, taking into account provisions of Paragraphs 281.4 and 281.5 Article 281 of the TCU, amount of the land tax rate and calculated amount of land levy.

In case of discrepancies between data of the supervisory authority and data confirmed by the land tax payer on the basis of originals of relevant documents or duly certified copies of such documents, in particular, documents on the ownership right, use of benefit, as well as in case of a change in the amount of land tax rate, the supervisory authority, to which the land tax payer applied, conducts a recalculation of the tax amount within ten working days (Paragraph 286.5 Article 286 of the TCU).

More than 5.6 million tax notifications-decisions on the land tax payment for individuals for the amount of 2.3 billion UAH were issued by the territorial bodies of the State Tax Service as of 28.09.2022.

Taxpayers paid over 1.9 billion UAH for land to local budgets during 2022.