Payers of land tax are Taxation, terms of payment, amount of deductions

2024 Author: Howard Calhoun | [email protected]. Last modified: 2024-01-17 18:37

Land tax is a mandatory tax paid by all land owners. Numerous changes are regularly made to the tax legislation, so tax rates increase, the terms for transferring funds change, or other innovations are applied. All taxpayers must keep track of them, since their lack of information about the changes cannot be a basis for evading the obligation to pay the fee. Land tax payers are both private citizens and companies. But they have different rules and procedures for paying funds.

Who pays?

Each person should know what mandatory payments to the state he must regularly transfer. Only under such conditions is it possible to avoid the negative consequences of the lack of transfers represented by large fines.

Payers of land tax are bothindividuals as well as enterprises. This tax is local, therefore funds are transferred to the regional budget. Land tax payers are land owners, so they must have official documents confirming that they really own the territory.

Companies pay this fee during the entire period of their operation, if they own land. You will have to transfer funds immediately after registration, and payments stop after the company closes.

Payers of land tax are persons:

• citizens who have the right to own any territory used by them for agricultural activities, the construction of a private residential building or other purposes;
• heirs en titled to lifetime tenure;
• people using the territory on the basis of perpetual use;
• companies that own land.

Citizens who have received land for free and fixed-term use are exempted from paying this fee. Additionally, citizens who lease land are not payers of land tax, therefore they pay regular lease payments for it to a private owner or the state.

The legislation clearly establishes the deadlines within which funds must be transferred. If the time frame is violated, the Federal Tax Service will charge fines and pen alties, which significantly increases the final amount of funds that will have to be transferred to the budget. Citizens must pay funds up to 1December next year.

What changes were introduced in 2018?

Although land tax payers are legal entities and individuals, different rules for paying this fee are established for them. Therefore, innovations in legislation can only apply to one type of taxpayer.

Some significant innovations have been introduced into the land tax calculation procedure:

• calculation procedure has been changed, since previously the book value of the territory was used, and now the cadastral price is applied, set by the state based on the different characteristics of the site;
• you can find out the cadastral price directly at the department of Rosreestr;
• over the next five years, the tax rate will gradually increase, resulting in a significant increase in payments.

Since private land owners are not required to calculate the tax themselves, they usually do not make mistakes, so they pay the correct amount of tax on the basis of receipts received from the Federal Tax Service. Firms are required to keep track of all changes, as they are required to do all the calculations themselves to determine the amount of the fee.

Payment nuances for individuals

Payers of land tax are citizens who can confirm their right to the territory. They must officially register the land with Rosreestr. Based on this information, the employees of the Federal Tax Service producetax calculation, after which ready-made receipts are sent to taxpayers at their address of residence.

Citizens don't need to do their own calculations. If, for any reason, there is no notification from the inspection within the prescribed time frame, then the site owners must independently come to the FTS branch to receive the document. The absence of a receipt cannot be a reason for non-payment of the fee. Under such conditions, the owner of the land will be held administratively liable.

Payers of land tax are only owners or users of territories correctly registered in Rosreestr. Their cadastral price is determined annually by cadastral engineers, after which the information is entered into the register. You can find out about this indicator directly in Rosreestr. Often the price is set too high, so citizens have the opportunity to challenge it. To do this, they perform actions:

• an independent assessment is ordered from a company licensed to implement this process;
• indicators are compared;
• if the assessment of an independent expert shows that the cadastral price should be less than it is set at the state level, then the owner of the territory files a lawsuit in court;
• a court session is being held, where the plaintiff must provide evidence of his innocence;
• if the court makes a positive decision for a citizen, the cadastral price decreases, which leads to a decrease in the tax;
• FTS employees recalculate, after which they issue to the ownerterritory a new receipt for payment of the fee.

But the court decision is not always positive for the plaintiffs, so they are forced to bear legal costs in vain, and after that they still transfer the full amount of tax to the budget.

Nuances of calculation for companies

Payers of land tax are not only citizens, but also various organizations. This fee is paid by all companies that own land plots on the right:

• property;
• lifelong inheritable possession;
• permanent use.

Companies are required to calculate the fee, after which they pay it to the local budget. They do not receive notifications from the Federal Tax Service, so the employees of the enterprise must independently find out the cadastral price and tax rate, after which these indicators are used for calculation.

Company Benefits

Payers of land tax are organizations that use territories for various purposes. They can build various commercial or industrial facilities on them, engage in agriculture or conduct other activities. At the same time, there is an opportunity for enterprises to use some indulgences from the state, the benefits provided. Such benefits may be:

Types of benefits	Their features
Federal	They are given in Art. 395 NK. Religious organizations do not pay this fee,if there are different buildings on the territory that have a religious or charitable purpose. In addition, the tax is not paid by organizations of the disabled.
Local	They are offered by each region separately. The municipality of any city can independently offer various indulgences for organizations. Most often, incentives are offered to large companies that use really large areas to conduct business.

You can learn about the possibility of using concessions directly at the department of the Federal Tax Service.

Rules for calculating tax by companies

Firms carry out the calculations themselves, so the accountant of the organization is obliged to understand the rules of this process. To correctly determine the amount of tax, some nuances are taken into account:

• the tax base is the cadastral price of the object, determined for any territory on January 1 of each year;
• for each plot the tax base is calculated separately;
• calculation uses a formula that involves multiplying the cadastral price by the tax rate;
• rates are set by local authorities in each region;
• in art. 394 of the Tax Code contains a maximum tax rate of 0.3% for land intended for housing construction, farming or for the implementation of agricultural work, and for other territories the rate is 1.5%.

Whencompanies should additionally take into account the benefits that are offered to them by local or federal authorities.

Payers of land tax are foreign citizens who bought or inherited land, and therefore are its official owners. The interest rate for them is set by the regional authorities. Foreigners, along with Russian citizens, receive annual notifications from the Federal Tax Service.

Privacy for individuals

The Tax Code lists citizens who are exempt from paying this fee. This includes faces:

• representatives of the peoples of the North, who use the territory to preserve their traditional way of life or to conduct folk craft;
• small representatives of the indigenous population of Siberia, the North or the Far East.

There are no other beneficiaries in federal law, but local authorities may include other citizens who belong to vulnerable categories of the population. Usually this includes pensioners, large or low-income citizens, veterans of the Second World War or others.

Tax rates for individuals

The rates are determined by local authorities, but by default they range from 0.025% to 1.5%. The percentage depends on the purpose for which the territory is used, as well as who is its owner.

Some citizens are completely exempt from paying the fee or can enjoy a deduction of 10 thousand rubles.

Payment due dates

The deadlines within which this local tax must be paid are set directly by the regional authorities. As a standard, citizens must transfer funds before December 1 of the next year.

Slightly different terms and calculation rules are provided for companies. Typically, businesses make advance payments of this fee on a quarterly basis. The final payment is made in January, therefore, before February 1 of the next year, the remaining amount of the fee must be transferred to the local budget. Additionally, a declaration is submitted annually by companies.

Responsibility for non-payments

All land owners must be responsible for their duty to pay fees. Land tax payers are organizations and individuals represented by the owners of territories. Even if citizens do not receive notification from the Federal Tax Service, they must take care of obtaining a receipt.

If the deadlines for transferring the fee are violated, a fine of 20 to 40 percent is charged. It increases if the employees of the Federal Tax Service have evidence of the intentional unwillingness of the owner of the territory to pay the fee. Additionally, for companies, a pen alty in the amount of 1/300 of the Central Bank refinancing rate for each day of delay is applied.

Conclusion

Land tax is considered a significant local levy that is paid by all owners who are citizens or businesses. It must be calculated correctly, for which the cadastral price of the plots is taken into account.

If funds are not transferred on time, this leads to the accrual of fines. Therefore, each taxpayer must take a responsible approach to their obligations to the budget.