Land tax (Chapter 31 of the Tax Code of the Russian Federation)

By purchasing real estate, a person receives not only the rights to use it, but also responsibilities that must be strictly fulfilled.

Land plots are also real estate; they can be owned or registered for perpetual use, and in both cases, individuals and legal entities are required to pay annual tax contributions for the operation of the land fund in their own interests.

Land tax is calculated according to the Tax Code of the Russian Federation. Subjects and objects of taxation are regulated by Chapter 31 of the Tax Code. At the regional level, the amount of contributions and the procedure for their payment are determined by regulations issued by local authorities, but the Tax Code of the Russian Federation serves as the basis for establishing its own rules.

Concept of land tax

Land is real estate, and all immovable objects are subject to tax obligations. Land tax is the contributions that owners of plots must pay to the state budget for the right to use the land granted to them in one of the permitted ways. Tax rates are imposed on all individuals and legal entities who own land plots, or use them on the basis of perpetual or permanent use rights, or have received them as an inheritance.

Land tax is calculated for the calendar year and is paid once a year. The billed amount of payments is calculated for the past period, taking into account the time of ownership of the land - a full year or only part of it. All taxpayers who own land in one form or another on the territory of the Russian Federation are required to pay land tax. These can be both citizens and foreigners.

The amount of contributions is individual and depends on the size of the plot, its location and other important nuances. The Tax Code provides for maximum tax rates, which at the regional level can be reduced, but not increased.

Chapter 31. Land tax

2) 1.5 percent in relation to other land plots.

2. It is allowed to establish differentiated tax rates depending on the categories of land and (or) the permitted use of the land plot.

3. If tax rates are not determined by regulatory legal acts of representative bodies of municipalities (laws of the federal cities of Moscow, St. Petersburg and Sevastopol), taxation is carried out at the tax rates specified in paragraph 1 of this article.

Article 395. Tax benefits

Contents of the Tax Code of the Russian Federation Part I Part II

1. Exempt from taxation:

1) institutions and bodies of the penal system - in relation to land plots provided for the direct performance of the functions assigned to these institutions and bodies;

2) organizations - in relation to land plots occupied by public state highways;

3) lost force in accordance with Federal Law dated November 29, 2004 No. 141-FZ;

4) religious organizations - in relation to land plots owned by them on which buildings, structures and structures for religious and charitable purposes are located;

5) all-Russian public organizations of disabled people (including those created as unions of public organizations of disabled people), among whose members disabled people and their legal representatives make up at least 80 percent - in relation to land plots used by them to carry out their statutory activities;

organizations whose authorized capital consists entirely of contributions from the specified all-Russian public organizations of disabled people, if the average number of disabled people among their employees is at least 50 percent, and their share in the wage fund is at least 25 percent, in relation to land plots used by them for production and (or) sale of goods (except for excisable goods, mineral raw materials and other minerals, as well as other goods according to the list approved by the Government of the Russian Federation in agreement with all-Russian public organizations of disabled people), works and services (except for brokerage and other intermediary services);

institutions, the only owners of whose property are the specified all-Russian public organizations of disabled people - in relation to land plots used by them to achieve educational, cultural, medical and recreational, physical education and sports, scientific, information and other purposes of social protection and rehabilitation of disabled people, as well as for providing legal and other assistance to people with disabilities, disabled children and their parents;

6) organization of folk artistic crafts - in relation to land plots located in places of traditional existence of folk artistic crafts and used for the production and sale of folk artistic crafts;

7) individuals belonging to the indigenous peoples of the North, Siberia and the Far East of the Russian Federation, as well as communities of such peoples - in relation to land plots used for the preservation and development of their traditional way of life, farming and crafts;

lost force in accordance with Federal Law dated November 29, 2004 No. 141-FZ;

9) organizations - residents of a special economic zone, with the exception of organizations specified in subparagraph 11 of this paragraph - in relation to land plots located on the territory of a special economic zone, for a period of five years from the month of the emergence of ownership of each land plot;

10) organizations recognized as management companies in accordance with the Federal Law “On Innovation” - in relation to land plots included in the territory of innovation and provided (acquired) for the direct performance of the functions assigned to these organizations in accordance with the specified Federal Law;

11) shipbuilding organizations that have the status of resident of an industrial-production special economic zone - in relation to land plots occupied by buildings, structures, and structures for production purposes owned by them and used for the construction and repair of ships, from the date of registration of such organizations as resident of a special economic zone for a period of ten years;

12) organizations - participants in the free economic zone - in relation to land plots located on the territory of the free economic zone and used for the purpose of fulfilling the agreement on the conditions of activity in the free economic zone, for a period of three years from the month in which ownership of each land plot arose. In the event of termination of the agreement on the conditions of activity in the free economic zone by a court decision, the amount of tax is subject to calculation and payment to the budget. The tax is calculated without taking into account the application of the tax benefit provided for in this subclause for the entire period of implementation of the investment project in the free economic zone. The calculated amount of tax is payable upon the expiration of the reporting or tax period in which the agreement on the conditions of activity in the free economic zone was terminated, no later than the deadlines established for the payment of advance payments of tax for the reporting period or tax for the tax period;

13) organizations recognized as funds in accordance with the Federal Law of July 29, 2021 N 216-FZ “On Innovative Scientific and Technological Centers and on Amendments to Certain Legislative Acts of the Russian Federation” - in relation to land plots that are part of the territory of an innovative scientific and technological center.

2. If, during the period of application of the tax benefits provided for in subparagraphs 9 and 12 of paragraph 1 of this article, a division or merger of land plots was carried out in relation to the land plots formed as a result of the division or merger, the tax benefits specified in subparagraphs 9 and 12 paragraph 1 of this article do not apply.

Article 396. Procedure for calculating tax and advance payments for tax

Contents of the Tax Code of the Russian Federation Part I Part II

1. The amount of tax is calculated at the end of the tax period as a percentage of the tax base corresponding to the tax rate, taking into account the specifics established by this article.

2. Taxpaying organizations calculate the amount of tax (the amount of advance tax payments) independently.

3. The amount of tax payable to the budget by individual taxpayers is calculated by the tax authorities.

4. Lost force in accordance with Federal Law dated July 27, 2010 No. 229-FZ.

5. The amount of tax payable to the budget at the end of the tax period is determined by taxpayer organizations as the difference between the amount of tax calculated in accordance with paragraph 1 of this article and the amounts of advance tax payments payable during the tax period.

6. Taxpayers for whom the reporting period is defined as a quarter shall calculate the amount of advance tax payments at the end of the first, second and third quarters of the current tax period as one-fourth of the corresponding tax rate as a percentage of the cadastral value of the land plot.

7. In the event that a taxpayer acquires (terminates) during the tax (reporting) period the right of ownership (permanent (perpetual) use, lifelong inheritable possession) to a land plot (its share), the calculation of the amount of tax (amount of advance tax payment) in relation to this of a land plot is carried out taking into account a coefficient defined as the ratio of the number of full months during which this land plot was in the ownership (permanent (perpetual) use, lifelong inheritable possession) of the taxpayer to the number of calendar months in the tax (reporting) period.

If the emergence of the right of ownership (permanent (perpetual) use, lifelong inheritable possession) to a land plot (its share) occurred before the 15th day of the corresponding month inclusive, or the termination of the specified right occurred after the 15th day of the corresponding month, the month of occurrence is taken as the full month (termination) of this right.

If the emergence of the right of ownership (permanent (perpetual) use, lifelong inheritable possession) to a land plot (its share) occurred after the 15th day of the corresponding month or the termination of the specified right occurred before the 15th day of the corresponding month inclusive, the month of occurrence (termination) of the specified rights are not taken into account when determining the coefficient specified in this paragraph.

7.1. If the cadastral value changes during the tax (reporting) period due to changes in the characteristics of the land plot, the calculation of the amount of tax (the amount of the advance tax payment) in relation to such land plot is carried out taking into account the coefficient determined in a manner similar to that established by paragraph 7 of this article.

8. In relation to a land plot (its share) transferred (passed) by inheritance, the tax is calculated starting from the day the inheritance is opened.

9. When establishing a tax, the representative body of a municipal formation (legislative (representative) government bodies of federal cities of Moscow, St. Petersburg and Sevastopol has the right to provide for certain categories of taxpayers the right not to calculate or pay advance tax payments during the tax period.

10. Taxpayers entitled to tax benefits, including in the form of tax deductions established by the legislation on taxes and fees, submit to the tax authority of their choice an application for a tax benefit, and also have the right to submit documents confirming the taxpayer’s right to a tax benefit .

Submission of an application for a tax benefit, confirmation of the taxpayer's right to a tax benefit, consideration by the tax authority of such an application, sending to the taxpayer a notice of the provision of a tax benefit or a notice of refusal to provide a tax benefit are carried out in a manner similar to the procedure provided for in paragraph 3 of Article 361.1 of this Code.

Forms of applications from taxpayers - organizations and individuals for the provision of tax benefits, the procedure for filling them out, formats for submitting such applications in electronic form, forms of notification of the provision of tax benefits, messages about refusal to provide tax benefits are approved by the federal executive body authorized for control and supervision in the field of taxes and fees.

If a taxpayer - an individual entitled to a tax benefit, including in the form of a tax deduction, has not submitted an application for a tax benefit to the tax authority or has not reported a refusal to apply a tax benefit, the tax benefit is provided on the basis of information received by the tax authority in accordance with this Code and other federal laws, starting from the tax period in which the taxpayer - an individual arose the right to a tax benefit.

In the event of the emergence (termination) of taxpayers' right to a tax benefit during the tax (reporting) period, the calculation of the amount of tax (the amount of the advance tax payment) in relation to the land plot for which the tax benefit is provided is carried out taking into account a coefficient defined as the ratio of the number of full months during which there is no tax benefit, to the number of calendar months in the tax (reporting) period. In this case, the month in which the right to a tax benefit arises, as well as the month in which this right is terminated, is taken to be a full month.

11 - 14. Lost force in accordance with Federal Laws dated July 23, 2013 No. 248-FZ and dated September 29, 2019 No. 325-FZ.

15. In relation to land plots acquired (provided) for ownership by individuals and legal entities on the terms of housing construction on them, with the exception of individual housing construction carried out by individuals, the calculation of the amount of tax (amount of advance tax payments) is carried out taking into account coefficient 2 during the three-year construction period, starting from the date of state registration of rights to these land plots until the state registration of rights to the constructed property. In the event of completion of such housing construction and state registration of rights to the constructed property before the expiration of the three-year construction period, the amount of tax paid for this period in excess of the amount of tax calculated taking into account coefficient 1 is recognized as the amount of overpaid tax and is subject to offset (refund) to the taxpayer in the generally established ok.

In relation to land plots acquired (provided) into ownership by individuals and legal entities on the terms of housing construction on them, with the exception of individual housing construction carried out by individuals, the calculation of the amount of tax (amount of advance tax payments) is carried out taking into account the coefficient 4 within a period exceeding the three-year construction period, up to the date of state registration of rights to the constructed property.

16. In relation to land plots acquired (provided) into ownership by individuals for individual housing construction, the calculation of the amount of tax (the amount of advance tax payments) is made taking into account coefficient 2 after 10 years from the date of state registration of rights to these land plots up to state registration of rights to a constructed property.

17. If the amount of tax calculated in relation to a land plot in accordance with this article (without taking into account the provisions of clauses 7, 7.1, paragraph five of clause 10 of this article) exceeds the amount of tax calculated in relation to this land plot (without taking into account the provisions paragraphs 7, 7.1, paragraph five of paragraph 10 of this article) for the previous tax period, taking into account the coefficient of 1.1, the amount of tax is payable by individual taxpayers in an amount equal to the amount of tax calculated in accordance with this article (without taking into account the provisions of paragraphs 7 , 7.1, paragraph five of paragraph 10 of this article) for the previous tax period, taking into account the coefficient of 1.1, as well as taking into account the provisions of paragraphs 7, 7.1, paragraph five of paragraph 10 of this article, applied to the tax period for which the amount of tax is calculated.

The provisions of this paragraph do not apply when calculating tax taking into account the provisions of paragraphs 15 and 16 of this article.

18. The body exercising state land supervision is obliged, within ten days from the date of issuing an order to eliminate the identified violation of the requirements of land legislation related to the non-use for agricultural production of a land plot owned by an organization or an individual on the right of ownership, the right of permanent (perpetual) use or the right of lifelong inheritable possession classified as agricultural lands or lands within agricultural use zones in populated areas (with the exception of land plots specified in paragraphs four and five of subparagraph 1 of paragraph 1 of Article 394 of this Code), to submit to the tax authority for the subject Russian Federation information about the non-use of such land for agricultural production.

When the body exercising state land supervision establishes that the specified violation has been eliminated or when the specified order is canceled, information about the establishment of such a fact or about the cancellation of such an order is submitted to the tax authority of the constituent entity of the Russian Federation within ten days.

The form, the procedure for filling it out, the format and procedure for submitting information provided for in this paragraph in electronic form are approved by the federal executive body authorized for control and supervision in the field of taxes and fees.

The information provided for in this paragraph is also submitted by the body exercising state land supervision to the tax authority upon its request within five days from the date of receipt of the relevant request.

The information provided for in this paragraph is submitted to the tax authorities free of charge.

19. Authorized by the highest executive body of state power of a constituent entity of the Russian Federation, the executive authority of a constituent entity of the Russian Federation or an institution under its jurisdiction, which, in accordance with the legislation of the constituent entity of the Russian Federation, carries out functions in the field of social protection of the population, are required to submit information to the tax authority of the constituent entity of the Russian Federation about individuals with three or more minor children, annually before March 1 of the year following the year for which the specified information is provided.

The information provided for by this paragraph is also submitted by the authorized executive body of the constituent entity of the Russian Federation or an institution under its jurisdiction, which, in accordance with the legislation of the constituent entity of the Russian Federation, carries out functions in the field of social protection of the population, to the tax authority upon its request within five days from the date receiving a corresponding request.

The information provided for in this paragraph is submitted to the tax authorities free of charge.

20. A body or other person authorized by the federal executive body, the federal state body in which federal laws provide for military service (service equivalent to it), the federal executive body authorized for control and supervision in the field of customs affairs, are required to submit to the tax body of the constituent entity of the Russian Federation information on cadastral numbers of land plots granted on the right of permanent (perpetual) use to the specified federal bodies and bodies under their jurisdiction and other persons and relating to land plots withdrawn from circulation in accordance with the legislation of the Russian Federation, and to land plots limited in circulation in accordance with the legislation of the Russian Federation, provided to ensure defense, security and customs needs, annually until March 1 of the year following the year for which the specified information is provided.

The form for submitting the information provided for in this paragraph, the procedure for filling it out, the format and procedure for submitting such information are approved by the federal executive body authorized for control and supervision in the field of taxes and fees.

The information provided for by this paragraph is also submitted by a body or other person authorized by the federal executive body, the federal state body in which federal laws provide for military service (service equivalent to it), the federal executive body authorized for control and supervision in the field of customs case, to the tax authority of the constituent entity of the Russian Federation at its request within five days from the date of receipt of the relevant request.

The information provided for in this paragraph is submitted to the tax authorities free of charge.

The provisions of this paragraph do not apply to the federal security service and the federal executive body authorized to solve problems in the field of protecting the population and territories from emergency situations.

Article 397. Procedure and terms for payment of tax and advance payments of tax

Contents of the Tax Code of the Russian Federation Part I Part II

1. Tax and advance payments of tax are subject to payment by taxpayer organizations in the manner and within the time limits established by regulatory legal acts of representative bodies of municipalities (laws of the federal cities of Moscow, St. Petersburg and Sevastopol).

In this case, the deadline for tax payment for taxpayer organizations cannot be set earlier than the deadline provided for in paragraph 3 of Article 398 of this Code.

The tax is payable by individual taxpayers no later than December 1 of the year following the expired tax period.

2. During the tax period, taxpayers-organizations pay advance tax payments, unless otherwise provided by the regulatory legal act of the representative body of the municipality (laws of the federal cities of Moscow, St. Petersburg and Sevastopol). At the end of the tax period, taxpayers-organizations pay the amount of tax calculated in the manner prescribed by paragraph 5 of Article 396 of this Code.

3. Tax and advance payments of tax are paid by taxpayer organizations to the budget at the location of land plots recognized as an object of taxation in accordance with Article 389 of this Code.

4. Taxpayers - individuals pay tax on the basis of a tax notice sent by the tax authority.

Sending a tax notice is allowed no more than three tax periods preceding the calendar year of its sending.

Taxpayers specified in paragraph one of this paragraph pay tax for no more than three tax periods preceding the calendar year of sending the tax notice specified in paragraph two of this paragraph.

Refund (credit) of the amount of overpaid (collected) tax in connection with the recalculation of the tax amount is carried out for the period of such recalculation in the manner established by Articles 78 and 79 of this Code.

Article 398.

Lost force from January 1, 2021 - Federal Law of April 15, 2019 No. 63-FZ

Contents of the Tax Code of the Russian Federation Part I Part II

The legislative framework

Until the end of 2004, the land tax was established by the Law of the Russian Federation No. 1738-1 “On Payment for Land” dated October 1, 1991. However, in November 2004, Federal Law No. 141-FZ was adopted, which amended the Tax Code, namely, added Chapter 31. In accordance with the new edition of the Federal Law, new rules for calculating land tax came into force on January 1, 2005. From that moment on, the Tax Code of the Russian Federation became the main legislative act regarding the taxation of land owners.

In September 2021, some paragraphs of Chapter 31 of the Tax Code of the Russian Federation were revised due to the introduction of new norms for calculating land contributions. The main change that influenced the very essence of the calculations was a different approach to the formation of the tax base. In particular, to calculate the amount of contributions from 2021, the cadastral value of the land is taken as the basis. It is determined based on the data entered into the Unified State Register of Real Estate and the facts available to the tax inspectorate.

Federal Law No. 286 provides for a phased transition to a new calculation system over three years from 2021 to 2021 inclusive.

Taxpayers

Subjects of taxation, in accordance with Article 388 of the Tax Code of the Russian Federation, are considered to be individuals and organizations that own plots of land under the following conditions:

On property rights.
Under a contract of unlimited use.
By right of lifelong inheritance.

Those persons who received land are not included in the list of taxpayers:

By the right of urgent or indefinite gratuitous use.
Based on the lease agreement.

Separately, the article highlights taxpayers who are members of mutual investment funds. The Tax Code determines that the tax is levied on the managers of the company, but it must be paid from the property that is included in the mutual investment fund.

Land tax benefits

In Art. 395 of the Tax Code of the Russian Federation provides benefits for the following legal entities and individuals on land tax:

for criminal executive authorities on the lands involved in the performance of their functions;
for companies with 80% of the total number of disabled people on their staff, for lands involved in the non-entrepreneurial sector;
for other persons (an exhaustive list of them is listed here).

In addition to these benefits for land tax, the Tax Code of the Russian Federation also identifies land plots for which the tax does not need to be calculated:

land under multi-apartment buildings;
land plots occupied by forests;
other objects for land tax ( details in the article “Object of taxation of land tax ”).

Object of taxation

Article 389 of Chapter 31 of the Tax Code of the Russian Federation regulates the list of objects subject to taxation. Legislative norms stipulate that they can be considered those plots of land that are located within the Russian Federation and which are subject to the prescribed norm.

Land fees for owned plots are collected in the following cases:

Land is the property of an individual or organization.
The site is documented for perpetual use.
The property was inherited with rights of lifelong ownership.

The same article specifies land real estate objects to which tax rates cannot be applied. These include:

Lands that have been withdrawn from circulation or limited in general circulation. Such areas include protected areas, archaeological monuments, and territories containing cultural sites included in the World Heritage List.
Forested areas.
Allotments on which water bodies are located and which are part of the water fund.
Land that is included in the common property of apartment buildings.

The objects of taxation do not include those lands that were leased or issued for free use.

Land tax rate and object of taxation

Land plots that are the object of taxation are taken into account in the tax base for land tax at their cadastral value.

All objects of taxation on which land tax is paid in Russia can be divided into two groups, each of which has its own tax rate. Its specific indicator should be determined at the local level by the authorities of municipalities, but in general these two rates should not exceed the values established by the Tax Code. Thus, Article 394 provides for a rate of 0.3% in relation to agricultural land plots occupied by housing stock and housing and communal services engineering infrastructure facilities, acquired for personal farming, gardening, truck farming, or lands provided for defense, security and customs needs and limited in view of this fact in circulation. Within the limits of the rate established by the code of 1.5%, the tax on land plots of all other categories is calculated.

Organizations that pay land tax determine their payment independently on the basis of open information about the cadastral value of the land tax sites they own and the tax rates applied to it. Individuals do not need to make their own calculations. Receipts with ready tax amounts for payment are sent to them directly by the territorial Federal Tax Service. The calculation again uses data from the cadastral values of land plots, the corresponding tax rates, as well as information about the ownership rights to certain plots registered for individuals.

The tax base

From 2021, the tax base is considered to be the cadastral value of land plots that are recognized as objects of taxation. The cadastral value of an individual plot is determined in accordance with the legislative norms of the Russian Federation.

The amount of land tax is calculated for each owner separately, taking into account the following features:

The size of the land plot.
Its location.
Availability of benefits for a taxable person.
Other important aspects.

Each land plot has its own cadastral value. The owner can find out by submitting a request to Rosreestr or by going to the official website of the state register, where this information can be obtained for free in one click.

It is important to remember that the amount of cost is determined in accordance with established standards, and therefore disagreement with the cadastral price set must be officially challenged. To do this, the taxpayer can apply to the Dispute Resolution Commission or directly to the court. For legal entities, it is mandatory to first submit an appeal to the Commission, and only then, in the absence of a satisfactory result, to the court.

Determination procedure

The amount of land tax is calculated based on the cadastral value of the land plot. When calculating the amount of the contribution, the tax rate that applies in the given region is taken. It may be determined by federal law or regulated by local regulations.

Land tax is calculated for the past reporting period, which is considered a calendar year. When determining the tax base, the following features are highlighted:

If the cadastral value is incorrectly assessed, previously accrued amounts are recalculated for each tax period separately.
If the price of a land plot has been revised as a result of a verdict made by the Commission or a court, then its size changes from the moment the application for revision of the value is submitted.
Changing the value in a different manner does not allow changing the established cadastral price in the current tax period, but applies new figures starting from January 1 of the new reporting year.

When determining the tax base of plots that are located on the border of two or more regions, the calculation is made separately for each subject in shares of the total established value according to the cadastre. The same rule applies in cases where several persons own one plot of land at once. The amount of contributions is determined as a percentage of the size of shared ownership.

How to calculate land tax in 2021

The tax payment for land is calculated based on the cadastral value. The tax base is determined for each plot based on the cadastral value as of January 1 of the year for which the calculation is made (Article 391 of the Tax Code of the Russian Federation). Changes in value during the year do not affect the calculation of the tax payment. When calculating land tax in 2021 for legal entities, use the formula:

To determine the amount of the advance payment, you need to calculate the amount payable for the year and multiply it by ¼.

A legal entity determines the tax base independently based on information from the Unified State Register of Real Estate. To do this, use open data posted on the “Public Cadastral Map” service. The most convenient way to search for a plot is by cadastral number. Based on the search results, the following information about the site will be obtained:

location address;
square;
cadastral value;
appointment.

The official website of Roskadastre contains a land tax calculator for 2021, which will calculate the amount based on the cadastral number of the property.

Taxable period

In general, the tax period is one calendar year from January 1 to December 31 inclusive. Contributions are calculated for 12 months of the previous year. The land tax is calculated at the end of the calendar year and after receiving annual reports and information from the real estate register about registered rights or alienation of land plots. Typically, the tax office summarizes the information received no earlier than the end of the first quarter of the current calendar year.

For some taxpayers, the entire calendar year may not be used to calculate tax contributions. This is due to the fact that they acquired a plot of land during the reporting period or, conversely, during a given period of time they ceased to be its owner. In such cases, the tax period is considered only the time during which the taxpayer was the real owner of the land. The amount of contributions is calculated as a percentage of the tenure period.

Tax rate

Land tax is calculated at the rates established by law. There are indicators established at the federal level that can be used by local authorities without change or adjusted by them as necessary. It should be borne in mind that accepted rates can be changed downward, but it is prohibited to increase the established interest barrier.

So, land tax is calculated at 0.3% of the cadastral value in the following cases:

The site is intended for agricultural work. This can also be land within populated areas that are included in agricultural zones and are used in accordance with it.
Land located under already built residential buildings or intended for future construction of residential space.
Allotments for farming - livestock farming, gardening, vegetable gardening.
The territory that is occupied for customs needs and is also used for the defense and security of the Russian Federation.

Objects that are not included in this list are taxed at a rate of 1.5%.

Tax determination period

Tax payments are calculated in accordance with legal regulations and have the following mandatory points, which can be an important guideline for each taxpayer, namely:

The period required to establish the tax value is one year.
Each entrepreneur undertakes to submit information about all his income three times a year to the tax office so that deductions are accurate and there are no violations. Individuals who are engaged in entrepreneurial activities undertake to the state to pay for the land plot or real estate used in accordance with all legal norms.

In accordance with the Land Code, a person who is engaged in any business activity in the territory of a municipal region is obliged to pay a percentage tax rate to the state. To calculate the tax, all information regarding the activities and the owner himself, the owner of the property or territory must be used.

Land plots on which any activity takes place have their own cadastral value and are subject to tax obligations.

Providing benefits

All types of taxation imply the presence of preferential categories that can be completely exempt from paying land tax or are subject to partial benefits that allow reducing the amount of contributions.

There are two types of benefits:

Federal – applicable to all taxpayers.
Regional – operating in certain territories.

The following groups of persons are eligible for federal benefits:

Heroes of the Soviet Union and Russia, as well as holders of the Order of Glory.
Participants in combat operations who are veterans or have been disabled due to injuries.
Disabled people of all groups except the third.
Disabled children.
Irradiated during the liquidation of consequences at the Chernobyl nuclear power plant.
Persons who took part in the testing of nuclear weapons, as well as those who eliminated the consequences of the actions of nuclear installations.
People who received radiation sickness and were recognized as disabled due to this, who took part in nuclear and space tests.

All these categories can count on a reduction in the tax base. But the small peoples of the Far North, Far East and Siberia are completely exempt from the tax burden regarding land plots.

At the regional level, local authorities often fully or partially exempt pensioners, low-income people and large families from paying.

Calculation of payments

Land tax is calculated by tax inspectors. But it would be useful for the taxpayer to understand how the calculation is made. To do your own calculations, you can use the following formula:

NZ = CC * PS

Where;

NZ – land tax, CC – cadastral price of the property,

PV – applied interest rate.

If the taxpayer is eligible for a benefit in the form of a partial reduction of the tax base, then the formula looks like this:

NZ = (KC – L) * PS

Where;

L is the amount of benefit by which the tax base is reduced.

If the tenure of the land plot is less than a calendar year, then the following formula is applied:

NZ = ((KC / 12) * M) * PS

Where;

12 is the number of months in a year

M – the number of months during which the land was owned by the taxpayer. Please note that days are not taken into account in the calculation, and a month is always taken as a unit, regardless of the date of registration of land for use or its alienation.

Payment procedure and term

The Tax Code establishes that the deadline for paying land tax is December 1 of the current year. Tax payments are made for the past calendar period. In accordance with the established date, the last day of payment is November 30th. But in the regions, local authorities may set earlier deadlines for making payments, but no later than December 1.

The tax office is obliged to timely calculate the amount of tax fees and notify each taxpayer of the need to pay.

By law, written notice must be delivered to land owners no later than 30 days before the payment deadline.

Today, many taxpayers receive emails rather than paper ones. But even the absence of notification does not relieve the person of the obligation to make tax contributions.

Payment of the accrued amount can be made in any way convenient for taxpayers - at bank cash desks, through terminals or by making various electronic payments. The main thing is that the owner has confirmation of the transaction, and the tax is paid in full before the deadline for payment.

Tax rate

The tax rate is established and provided by regional authorities in accordance with laws and other legal regulations that are established by government agencies.

It should be remembered that the tax rate must comply with the norms and at the same time has a different percentage coefficient:

Land plots related to agricultural activities have their own interest rate, which determines the tax. This also includes areas that are used for production or use in populated areas and equated to agricultural land.
Lands that are occupied by infrastructure, except for private enterprises, that belong to a specific owner and are used by private individuals.
If land is purchased for personal farming, then the interest rate is quite low and provides more opportunities for the development of this type of activity. Dacha farming, gardening or the development of your own farm is encouraged by the state.
In relation to other land divisions, the interest rate increases to one and a half percent.
Differential rates are established in accordance with the different categories of land use and the definition of the category of land.

All land divisions are taxed, but according to the law, this is where the information is available, which suggests the importance of each area. The land should be taken with a mandatory indication of the activities that will be carried out on it.