Land tax payment is obligatory payment as a part of property tax. It is collected in two forms:
- Land tax – paid by owners of land plots, land shares (parts) and permanent land users.
- Rent – paid for the use of land plots of state or municipal property under the lease agreement terms.
Who and when accrues the tax
- Regulatory authorities accrue tax to individuals based on the location of land plot (including land share/part) until May 1.
- Basis for accrual is official data from the:
State land cadastre;
State register of real property rights;
State acts on land,
certificates of the right to land plots (shares),
decisions of local councils, other legal documents certifying ownership or right to use land plot (share);
List of territories where hostilities are (were) ongoing or temporarily occupied by the russian federation, determined according to procedure established by the Cabinet of Ministers of Ukraine.
- If there is no information about one’s plot in the databases, the tax will be accrued based on the information from documents the payer provided until the data is updated in registers.
Deadlines for sending and paying
- By July 1, the Tax Service sends tax notification-decision along with a detailed calculation of the tax amount, which contains:
cadastral number and area of the land plot;
tax rate;
tax benefits.
- Tax must be paid within 60 days from the date of receipt of notification.
- If the notification was not sent on time – liability for late payment does not arise.
- Important: tax liability for this tax can be accrued for tax (reporting) periods (years) within the time limits specified by the Code, i.e. for 1095 days.
If the owner has changed
- Previous owner pays for the period from January 1 to the beginning of month in which he/she lost ownership.
- The new owner pays starting from the month in which he/she acquired ownership.
- If the change occurred after July 1, the Tax Service sends new tax notification-decision to the previous owner, and the previous notification is canceled.
Data verification and reconciliation
- If the one owns one or more land plots or shares, there is a right to conduct a reconciliation of information with the Tax Service at the registration place or location of any plot.
- This will help avoid errors in the accrual.
Rent payment
- Accrual basis is the land lease agreement.
- Executive authorities and local governments that conclude land lease agreements must, by February 1, submit to the regulatory authority at the location of land plot lists of tenants with whom land lease agreements have been concluded for the current year, as well as inform about the conclusion of new ones, changes to existing agreements and their termination by the 1st of the month following the month in which such changes occurred.
- Rent payment terms are determined by the agreement, but the general procedure for calculations is regulated by the same Articles of the Tax Code of Ukraine, as the land tax.
Land tax payment benefits
- Certain categories of citizens are exempted from the tax (specified in Article 281 of the Tax Code of Ukraine), for example:
- persons with disabilities of the first and second groups;
- individuals raising three or more children under the 18 years old age;
- pensioners (by age);
- war veterans and persons subject to the Law of Ukraine "On the status of war veterans, guarantees of their social protection";
- individuals recognized by the law as persons affected by the Chernobyl disaster.
Benefit is valid within the area limits for each type of land use:
- for personal farming - not more than 2 hectares;
- for construction and maintenance of a residential building, outbuildings and structures (homestead 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 summer cottage construction - not more than 0.10 hectares;
- for construction of individual garages - not more than 0.01 hectares;
- for gardening - not more than 0.12 hectares.
- For a period of validity of the single tax of Group IV: owners of land or shares leased to the payer of the single tax of Group IV are exempted from the land tax for the lease period.
- During the martial law, the land tax and rent are not charged and paid for:
- plots of state and municipal property located in territories of active hostilities or temporary occupation of the russian federation:
from 01.01.2022 to 31.12.2022 – for individuals,
from 01.03.2022 to 31.12.2022 – for legal entities and individuals-entrepreneurs,
from 01.01.2023 – from the month of start of active hostilities (temporary occupation) until the last day of month of their completion.
from 01.05.2024 – for territories where the state electronic information resources operate.
Dates are determined according to data of the List of territories in which hostilities are (were) being conducted or temporarily occupied by the russian federation, which was approved by Resolution of the Cabinet of Ministers of Ukraine.
- land plots on which residential and/or non-residential real estate objects were destroyed as a result of hostilities:
Information about destroyed objects must be entered into the State register of property damaged and destroyed as a result of hostilities, terrorist acts, and sabotage caused by the armed aggression of the russian federation against Ukraine
Benefit is provided within the area of land plots:
for individuals – owners of destroyed residential real estate:
in villages - not more than 0.25 hectares;
in settlements - not more than 0.15 hectares;
in cities - not more than 0.1 hectares;
for individuals and legal entities:
100% of the land plot area – if area of destroyed object is greater than or equal to 1/3 of the total area of land plot on which such object was located;
50% of the area – if such area does not exceed 1/3.
Benefit is valid from the first day of month of the object destruction to the last day of month of restoration of the real estate, abolition of the martial law, but not later than 01.01.2026.
Local councils, during the martial law, making decisions on setting rates and benefits, may:
not apply requirements regarding terms of their adoption and publication, transmission of information to the regulatory authorities,
grant individual tax benefits.
To take advantage of the benefit:
1. If the one has several plots of the same type, submits application to the Tax Service by May 1, indicating which plots the benefit applies to.
2. If right to the benefit arose during the year, submits application within 30 days.
3. Benefit begins to apply from the month following submission of application (or from the next tax year, if deadlines are missed).
4. If right to the benefit is lost, the tax begins to be charged from the month following the loss.