Land tax: calculation formula, payment terms, benefits

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Tax collection is a prerequisite for having a land plot in the property. The owner can be either an individual or a legal entity. The Tax Code of the Russian Federation contains the basic rules, as well as the formula for calculating the tax on a land plot. All the nuances regarding the categories of the owner, the characteristics of the land and others are regulated at the regional level.

Legislative Framework

The main provisions of the law that apply when calculating land tax include the following:

• According to paragraph 1 of Art. 65 of the Labor Code of the Russian Federation, the use of a land plot is paid.
• In art. 15 of the Tax Code of the Russian Federation states that land tax refers to regional fees.
• Standards of land ownership by individuals and legal entities is devoted to Ch. 31 of the Tax Code of the Russian Federation.
• Besides, each region has its own legal acts specifying federal norms. These include, for example, setting an interest rate.
• In art. 387 of the Tax Code of the Russian Federation states that this tax feeestablished simultaneously at the federal and regional levels. From the article you can also learn about the procedure and period of payment, that in certain cases a non-taxable amount (benefits) may apply.
• Another document that is relevant to the issue under consideration is the PP of the Supreme Arbitration Court No. 54. The Resolution states that legal acts on land ownership are used in calculating land tax.

Calculation basis

The base on which the land tax calculation formula for individuals and legal entities is applied is the cadastral value. Its value is fixed at the regional level.

Before the land tax calculation formula for individuals and legal entities is applied, preliminary work is carried out to obtain the following information:

• On the existence of an obligation to make an advance payment or the absence of such. This information is contained in the legal acts of the regional level.
• About availability of benefits.
• About the current tax rate for a particular category of land.
• About the cadastral price for a land plot.

The basic formula for calculating land tax for legal entities (and individuals) is as follows:

tax=inventory pricecurrent interest rate.

The calculation is based on the amount obtained as a result of the assessment of the allotment carried out by authorized state structures (where its purpose is taken into account), established on the date of registrationownership of land.

The tax code serves as the legislative base. It lists the margins. For the categories specified in paragraph 3 of Art. 394 of the Tax Code of the Russian Federation, the rate is 0.3 percent, and for other categories - 1.5 percent.

The category of land, which is the property of a legal entity, is indicated in the charter papers of the organization. If this rate is not set at the local level, then the payment is made at the maximum amount provided for by the Tax Code of the Russian Federation.

Advance payments are cases where the land tax is transferred quarterly. The calculation formula allows you to get the total amount of tax collection. When paying tax, an advance is deducted from this amount. To calculate it, the following formula for calculating land tax for individuals (and legal entities) is applied:

advance=inventory pricebid / 4.

Tax base

In art. 390 of the Tax Code of the Russian Federation states that the cost of the land according to the cadastre serves as the basis for calculating the tax. The calculation is carried out according to the data falling on the first day of the tax period. However, if the land was purchased in the middle of the year, then the corresponding cost is taken on the date on which the state registration was carried out.

Having de alt with the general application, you can proceed to the features of the calculation for legal entities and individuals.

Settlement for legal entities

The easiest way to understand how calculations are made is to look at a specific example. The company owns the land for a year. Local authorities are required to pay land taxevery quarter. To make a calculation, the following data is taken:

• Cadastral price – 20,350,000 rubles
• Tax rate is 1.5%.
• No benefits apply.
• All required advances have been made.
• Reporting period is one year.

The calculation of the amount for 1 quarter is calculated as follows:

20, RUB 350 million1.5% / 4=76.313 thousand rubles

Advances for the second and third quarters must be paid in the same amount. The land tax for the year will be equal to 305,250 thousand rubles. At the same time, at the beginning of next year, you need to pay the same amount - 76,313 thousand rubles.

Ownership of a plot of land for an incomplete year: tax calculation

The right of ownership does not always come from the beginning of the year. Land can be bought, for example, in the middle of the year. Therefore, for land tax, the calculation formula is applied taking into account the real time of ownership. For this purpose, additional data is included in the formula, as a result of which it will look like this:

tax=inventory pricerate(number of months of ownership / 12 months).

Then:

quarter advance payment=inventory pricerate(number of months of ownership / 5) / 4.

The calculation includes only the full months of the land being owned. The period is taken until the 15th. The tax is paid at the end of the year. Its amount is calculated by the owners themselves. But if the local authorities ordered quarterly advance payments, then at the end of the year it will only be necessary to pay extrathe same payment amount.

Example of calculation for an incomplete year of ownership

According to the documents, the company owns a plot of land since May 14th. The cadastral price is 25,500,000 rubles. A rate of 1.5% applies. Benefits to the owner are not provided, and advances are made. It turns out the following picture:

• Company did not own land in Q1.
• 2 months ownership in Q2.
• In the 3rd quarter - 3 months.
• In total, the company owned the allotment for 8 months in a year.

Then for the advance payment for the 2nd quarter on land tax, the calculation formula with the example data is as follows:

25,500,0001.5% (2 / 3) / 4=63.750 thousand rubles.

The calculation for the 3rd quarter will be as follows:

25,500,0001.5% / 4=95.625 thousand rubles.

The land tax for the whole year is calculated as follows:

25,500,0001.5% (8 / 12)=255 thousand rubles.

It turns out that the additional payment after the year will be equal to the amount similar to the 3rd quarter - 95,625 thousand rubles.

Settlement for individuals

Individual must pay land tax in the form of a single amount at the end of the year. In this case, you do not need to carry out the calculations yourself. This is done by the tax service, after which it sends the appropriate notifications. At the same time, the owner of the land allotment has the right to independently verify the accuracy of the amount indicated in the tax notice. To do this, you need to know whether there are laws adopted at the local level or not. In addition, it turns outthe following details:

• Is the owner en titled to enjoy any benefits.
• The price of land that is taxed.
• Tax rate.

Different regions provide their own benefits for individuals. Information about this can be obtained from the tax office at the place of residence by making an appropriate request. If the taxpayer is en titled to a benefit, he must contact the tax authority himself and submit an appropriate application. In this case, you must attach a copy of the document on the ownership of the site. Then the tax service confirms the right to the benefit and further makes calculations taking it into account.

Citizens should be aware that the land tax rate cannot exceed, in particular, the following amounts:

• 0, 3% - for agricultural land and summer cottages.
• 1, 5% - for other lands.

The main formula for calculating land share tax is as follows:

tax=inventory pricecurrent rate.

If there are benefits, then the calculation will be as follows:

concessional tax=(cadastral price - tax-free amount)current rate.

Full months are subject to calculation. The principle in this case is the same as with legal entities.

Example

Despite the fact that individuals do not have to calculate the land tax, how to calculate (example) - it is desirable to know. This will help, if necessary, to check the accuracy of the data provided by the inspection staff. Data for calculation:

• Ivanov has owned a dacha since the beginning of the year. But on September 17, he sold it.
• The cadastral value of the site is 850 thousand rubles.
• The current rate is 0.3%.
• No benefits apply.
• Advance payment not paid.
• Owned for 9 months.

The tax is calculated as follows:

850,0000.3%(9 / 12)=RUB 1912

This is the amount Ivanov will have to pay at the end of the year.

Features

Article 388 of the Tax Code contains information on the basics of mandatory contributions for the use of land owned in perpetual use or owned by life inheritance:

• If the inventory price changes, it will be taken into account next year.
• If there are errors, the local tax authorities will recalculate, making the necessary corrections.
• The cadastral price for a plot may change as a result of consideration of the relevant issue by the dispute commission or the court. In paragraph 1 of Art. 391 of the Tax Code states that changes are made in the same year in which the application was received, but not earlier than this date.
• When owning land in shares, payment is made in proportion to the share of each individual.
• When owning land by several persons without determining shares (joint ownership), taxes are considered equally.

Timing

Payment is due by December 1 of the following year after the year for which the tax is calculated. For example,for 2018, the land tax must be paid before December 1, 2019.

The calculation formula is not present in the notification. But the taxpayer himself can check the amount. The notice is sent to the taxpayer one month before the payment deadline.

Companies calculate their own land tax. The rate for legal entities, the possibility of benefits and more - accountants need to find out all these questions in order to perform the correct calculation.

How old

Notice is sent to the private person who is responsible for the disposal of the land plot. A citizen must be an adult and capable person. But if the owner of the site has not yet reached the age of eighteen, then the responsibility for the timely payment of taxes rests with his legal representatives - parents or guardians.

When a child reaches the age of fourteen, parents can write an application to delegate this responsibility to an older child. The application must state the request for the tax to be charged to the owner of the site, who is not yet eighteen years old. It also expresses consent to the transfer of this responsibility. However, if the minor owner is late in payment, then the claims of the tax service will apply to applicants who represent the property interests of the minor (that is, legal representatives).

Responsibility for non-payment

If the owner of a plot of land does not fulfill the obligation to pay tax,tax inspectorate specialists first send a second notice to the non-payer. It is given against receipt. If this does not work, then a fine is charged, the amount of which is determined by the local authorities. When the amount of debt reaches the mark of 1500 rubles. or three years have passed since its appearance, the inspector applies to the judicial authority to collect the amount of tax forcibly.

The owners of those plots of land for which the cadastral price has not been determined are also required to pay the appropriate fee. If calculation is not possible, the nominal value is applied. But this is very rare.

You can find out if there is a land tax debt by registering on the official website of the tax service or by contacting the territorial division of the inspection at the place of residence.

The final amount depends on the location of the allotment, its application and area. It is not difficult to find out the price according to the cadastre today, since the relevant data are posted on the Rosnedvizhimost website. The current rates can be found on the website of the municipal authorities.

Conclusion

Thus, knowing the basic principles of calculation, you can easily calculate the land tax. The income tax rate, the cadastral price, the availability of benefits, the need or lack of the need to make an advance - these are the main data that should be studied in order to correctly calculate.

This action is necessary for the legal entity, since the responsibility for the calculation is assigned to it. An individual does not need to do this, sincethe calculation is performed by the tax service, after which it sends a notification. However, a citizen can always verify these amounts by doing the calculations themselves.