Deadlines for payment of advance payments for land tax

How do general rules and local specifics relate?

The rules for calculating and paying land tax are enshrined in Chapter 31 of the Tax Code. The provisions of this chapter are the same for all municipalities of the Russian Federation, but local authorities have the right to establish some features within the framework of general rules.

Thus, the municipality can approve its own tax rates, but these rates should not exceed the maximum values ​​​​set out in the Tax Code. In addition, for organizations, a municipal entity has the right to set its own deadline for paying taxes and advance payments, provided that the last date for transferring money is not earlier than the one specified in the Tax Code of the Russian Federation. For individuals, the tax payment deadline is fixed directly in the Tax Code. Finally, local authorities can introduce their own land tax benefits, as well as establish or not establish reporting periods within the tax period.

Procedure for paying advances

In those municipalities where laws on advance payments for land tax have been adopted, the terms for their payment by organizations have also been determined. Advance tax payments are calculated at the end of each quarter. At the end of the tax period, the remaining unpaid amount of tax is determined and payment is made. Before the end of the year, the organization cannot determine whether the tax has been overpaid.

When the owner of a land plot changes, the acquisition of the right to it occurs at the time of re-registration to the new owner. This right appears only when an entry is made in the Unified State Register of Rights to Real Estate (USRE). Payment of land tax depends on the date of transfer of ownership: if before the 15th day, the tax is paid by the buyer, if after the 15th day, the tax is paid by the seller.

Who doesn't pay land tax

Individuals and organizations leasing land plots or owning them under the right of free, fixed-term use.

In addition, the Tax Code contains a closed list of taxpayers exempt from land tax. The list includes religious organizations (in relation to sites under church and charitable buildings); public organizations of disabled people (in relation to sites used for statutory activities); any enterprises in relation to land occupied by public public roads and a number of other categories. This list is valid in all areas without exception.

In addition, each municipality has the right to additionally establish its own benefits.

Sample of filling out a land tax return for legal entities

Payment of land tax for legal entities must be documented in reporting documents.

The nuances of settlement transactions, as well as the procedure for submitting information about land and accrued tax duties are regulated by the Tax Code. Business entities in the status of a legal entity are required to submit a land declaration. Individual entrepreneurs are exempt from filing reports, since they pay taxes upon notification of the authorized body.

What is not subject to tax?

For plots withdrawn from circulation in accordance with the laws of the Russian Federation. Also exempt from taxation are areas with limited circulation, on which particularly valuable objects of cultural heritage are located, or objects intended to meet the needs of defense, security and customs. Finally, forest lands and areas occupied by state water bodies are not subject to land tax.

It is also stipulated that land plots that are part of the common property of an apartment building are not considered subject to land tax.

Payment deadlines

The amount of land tax is paid by the organization to the budget within the time limits established by regulations of the territorial authorities, but not earlier than the date of submission of the declaration on the annual results. The deadlines can be clarified by contacting the Federal Tax Service electronic service.

For 2021, the tax payment date cannot be earlier than February 1, 2021.

If the deadline falls on a non-working day, it is transferred to the next working day and transferring the land tax on this date will not be an error leading to the application of penalties.

If local authorities have established a quarterly (advance) regime for paying land tax, then the procedure and deadlines are prescribed in the relevant regulatory documents. As a rule, the deadline for payment of the fee is the last day of the month following the reporting quarter.

As an example, let’s look at the deadlines for paying the advance payment established by Moscow Law No. 74 dated November 24, 2004.

Tax rate

Each municipality approves its own land tax rates, subject to the restrictions established by the Tax Code. It names the maximum values ​​for various categories of land. Thus, for agricultural plots, plots occupied by housing stock and plots intended for personal subsidiary and dacha farming, gardening, vegetable farming and livestock farming, the maximum permissible rate is 0.3%. For all other lands the maximum rate is 1.5%.

In addition, local authorities have the right to differentiate rates depending on the categories of land and the permitted use of the site. You can find out what rates and benefits have been introduced in your area by contacting your tax office.

The legislative framework

The regulatory document on land taxation is Chapter 31 of the Tax Code. It defines legal entities that are payers of the fee. These are all organizations that have registered rights to land plots located:

• owned;
• in perpetual permanent use.

Organizations that do not pay land tax:

• using the allotment under a contract of free fixed-term use or lease;
• if the site is on the list of lands not subject to tax Art. 389 NK.

List of lands not recognized as objects of taxation:

In addition to tax exemption, land tax benefits are established for legal entities. They are divided into two levels:

1. Federal benefits . A number of organizations fall under tax breaks established by Article 395 of the Tax Code. These include:

• institutions of the penal system;
• religious and shipbuilding organizations;
• public organizations where at least 80% of employees are disabled;
• organizations of folk arts and crafts engaged in the production of folk products;
• land plots occupied by people or communities who belong to the indigenous peoples of the North, Siberia and the Far East of the Russian Federation;
• institutions of the Federal Penitentiary Service of Russia;
• companies included in the fund of the innovative scientific and technological center;
• companies that own public roads.

2. Local benefits . All territorial benefits are established by regulations of municipal authorities. Regions have the right to determine the size of the area of ​​the plot from which land tax will not be calculated.

Who calculates land tax independently?

Until 2021, taxpaying organizations calculated the amount of land tax independently. Tax for 2021 and later periods is calculated by both organizations and inspectors. The Federal Tax Service sends a message to the company indicating the rate, amount to be paid and other information. In case of disagreement, the company has the right to draw up explanations and attach documents to them (for example, about a benefit), and tax authorities are obliged to consider them.

Individual entrepreneurs and individuals without individual entrepreneur status pay land tax on the basis of tax notices sent by the inspectorate. In this case, employees of the Federal Tax Service have the right to present tax for payment for no more than three years preceding the year when the notification was sent. If they include land tax for earlier periods in the notification, the taxpayer has the right not to transfer the money.

So that the tax inspectorate can calculate the tax, information about the plots is sent to the tax authorities by employees of the body that carries out cadastral registration, maintenance of the real estate cadastre and state registration of rights to real estate and transactions with it (State Register). The Tax Code obliges this structure to report to the tax inspectorates annually, before February 1, information about the plots as of January 1 of the same year.

In practice, it happens that the tax office does not receive information on the acquisition by individuals of objects subject to land tax (for example, land plots) in a timely manner. In this regard, tax notices are not sent and tax is not paid because of this. To resolve this problem, an obligation has been introduced for individuals to report to the inspectorate about objects subject to land tax, if for the entire period of real estate the individual did not receive notifications and did not pay the tax. In addition to the message, title documents must also be submitted. This must be done before December 31 of the year following the expired tax period. Individuals who fail to fulfill this obligation may be fined in the amount of 20% of the unpaid tax amount in relation to a plot of land “hidden” from inspectors.

Who should pay?

According to general rules, payers of land tax are persons who own land plots. In this case, they are legal entities that use these types of real estate for business-related purposes. In particular, these may be the following entities:

• enterprises;
• institutions;
• organizations.

Moreover, the form of ownership of these types of legal entities does not matter - the obligation to pay is the same for both private and state or municipal organizations.
The main criterion is the type of title under which they own the land. In particular, in relation to legal entities, the obligation to pay is established for the following rights:

• property;
• permanent unlimited use.

For tenants of plots and those enterprises that own them on the right of free use, the obligation to pay tax is not established. Also, exemptions from this are granted to certain categories of payers, as well as types of land that are established in legislation. All other landowners who are not included in the list of beneficiaries are required to pay tax on a general basis.

It is worth considering that the payer pays the tax amount to the Federal Tax Service office of the region or subject of the Russian Federation to which his site belongs. For example, land owners in Moscow or Moscow Region will pay this fee in accordance with the legislative specifications that are provided for in a particular locality.

Since in these regions the cadastral value of plots is usually very high, the amount of benefits and discounts provided to owners can also be very significant. Also, local regulations may establish the right to tax exemption for certain categories of legal entities, and the selection criteria are very individual.

How to calculate land tax

You need to determine the tax base and multiply it by the tax rate. The tax base and amount are calculated separately for each plot of land. If the site is located on the territory of several municipalities, then it is necessary to separately determine the base for each part falling on each of the municipalities. If the plot is jointly owned by several persons, then it is necessary to separately determine the basis for each share owned by each person.

The tax base is the cadastral value of the plot (or its share) as of January 1. If the plot is formed in the middle of the year, then the tax base is the cadastral value as of the date of cadastral registration.

The Tax Code of the Russian Federation provides a list of categories of taxpayers for whom the base is reduced by a non-taxable amount. It is equal to the cadastral value of 600 sq. m. area of ​​the site. The number of persons who are entitled to take advantage of this benefit includes, among others, veterans of the Great Patriotic War, heroes of the Soviet Union and the Russian Federation, disabled people and pensioners. Municipal authorities may adjust the list or change the amount of the deduction.

The base should be determined and the tax calculated based on the results of the tax period, which is equal to one calendar year. In the case where the right of ownership (perpetual use or lifelong inheritable gift) arose or ceased in the middle of the year, then the land tax must be calculated taking into account the coefficient. To find it, you need to take the number of full months during which the taxpayer owned the plot and divide it by the number of calendar months in the year.

If the right arose or terminated before the 15th day inclusive, then the month in which the rights arose is taken as a full month. If the right arose or terminated after the 15th day, then the month of termination of the rights is taken as a full month. The same algorithm should be applied in a situation where in the middle of the year the type of permitted use of the site changed, or the site was transferred from one category of land to another.

Let's explain with an example. Let's say an organization purchased a plot of land on February 25 and sold it on September 20. It turns out that the company owned the site for seven full months (March, April, May, June, July, August, September). This means the coefficient is 0.59 (7 months: 12 months).

Principle of tax calculation with example

How is land tax calculated for a legal entity? In order to calculate the tax that should be paid by the owner, you need to know two indicators:

1. Cadastral value of the land plot.
2. The rate that was approved for a certain category of allotment.

All rates are fixed and are provided for entrepreneurs and public organizations. It also depends on the type of land the legal entity is using. Rates of 1.5% and 0.3% were fixed at the same level.

Taxation, in addition to federal laws, is regulated at the local level. But regional authorities do not have broad powers to change rates. They can only reduce the standard provided by them.

When calculating the burden, the following formula is used:

Land tax = cadastral value of the plot (per 1 sq. m.) × land plot area × tax rate (%)

NZ = Sk * Sn

where: H3 is the amount of tax paid, Sk is the cost of the plot according to the cadastre, Sn is the currently valid rate.

The formula may undergo changes if the legal entity has benefits.

When to transfer money

Taxpayers-organizations and entrepreneurs transfer land tax no later than the date established by local legislation. According to the provisions of Chapter 31 of the Tax Code of the Russian Federation, such a date cannot be earlier than February 1 of the year following the tax period.

Automatically generate a tax payment invoice based on the data from the declaration and submit reports via the Internet

Municipalities may introduce reporting periods for land tax. These are the first, second and third quarters, respectively. In areas where reporting periods have been introduced, enterprises and individual entrepreneurs must make advance payments throughout the year. The amount of such payment is one fourth of the cadastral value as of January 1, multiplied by the rate. Advance payments must be made within the deadlines established by the municipality. When paying the final tax amount, advance payments made during the year must be taken into account. Municipalities that have introduced reporting periods have the right to exempt certain categories of taxpayers-organizations and entrepreneurs from advance payments.

Taxpayers - individuals do not make advance payments for land tax. They only remit the total tax amount stated in the notice. The deadline for payment of land tax by individuals is specified directly in the Tax Code of the Russian Federation - no later than December 1 of the year following the expiration (regardless of the subject of the Russian Federation).

In addition, individuals can voluntarily make the so-called single individual tax payment. To do this, you simply need to transfer a certain amount to the appropriate Federal Treasury account. The money will be written off to fulfill the obligation to pay “property” taxes, including land tax. The inspection itself will decide how to offset the funds: against upcoming payments or towards payment of arrears.

How to reduce land tax for a legal entity?

If the cadastral value of land changes during a calendar period, the organization has the right to reduce the tax. However, the reason for the decrease in value will be taken into account, which must be documented and explained to the Federal Tax Service.

Reason 1. The decrease in value occurred due to a court decision

It is possible to reduce the tax only after the decision has been made, has entered into legal force and the information has been entered into the Unified State Register of Real Estate. Then the organization will be able to recalculate the fee from the beginning of the year on the basis of paragraph 6, paragraph 1, Article 391 of the Tax Code, when an application for revision of the cadastral value was submitted.

Before submitting an application to the tax office, you must request an extract from the Unified State Register and make sure that the cost has been reduced.

Sample explanation about changes in land tax payments as a result of a decrease in the cadastral value of land by a court decision

An organization can reduce rental payments in cases where the land is transferred under a lease agreement and land tax is compensation to the owner. When the value of the plot changes, the fee is reduced and gives the right to adjust the amount of rent.

Moreover, before going to court to reduce the cadastral value, it is necessary to obtain written consent from the land owner. The lease agreement can be re-signed in a new version or an additional agreement can be drawn up to the current one.

Reason 2. Errors were discovered in the Unified State Register and the cost of land was reduced after they were corrected

An inflated value may have been applied to the land plot due to errors of a technical or other nature. After they are corrected and new information is reflected in the Unified State Register of Real Estate, the organization has the right to apply to the tax authorities with declarations clarifying the amount of tax for all periods when the erroneous value of the land was in effect. This norm is enshrined in paragraph 5, paragraph 1 of Art. 391 NK).

Explanations should be attached to the declarations, as well as copies of extracts from the Unified State Register. The tax inspectorate, as part of interdepartmental cooperation, will clarify in Rosreestr the reasons for the discrepancies and will compare the received data with the declarations submitted by the organization.

If advance payments for land tax are reduced, inspectors of the Federal Tax Service have the right to request clarifying documents from the company. According to clause 3 of Article 88 of the Tax Code, the organization is obliged to submit within 5 working days or correct discrepancies within the same period.

Sample explanation about changes in land tax payments as a result of correcting an error

Reason 3. The cost of land has changed at the initiative of local authorities

If inaccurate information is discovered, the territorial authority has the right to clarify the cadastral valuation of the land. Its reduction allows the company to adjust the land tax.

Here you should have on hand a document containing the effective date of the new assessed value. Only this can be used as a starting point when submitting an explanation to the tax authority. An organization can reduce tax for previous periods only if the corresponding date is indicated.

Sample explanation about changes in land tax payments after changes in the cadastral value by local authorities

Where should I pay?

Legal a person must pay this tax fee to the tax office at the actual location of the specified site.

If an organization has several plots in different territorial units, then the tax is calculated and paid as follows:

• calculations are made for each section separately. According to the rates accepted in this municipality;
• after the amount has been established, it is necessary to pay it at the location of the specific site.