Land tax payers are ... Taxation, terms of payment, amount of deductions

Land tax is a mandatory tax paid by all owners of land. Numerous changes are regularly introduced into tax legislation, so tax rates are increased, the timing of funds transfers is changed, or other innovations are applied. All taxpayers must track them, since their lack of information on the changes cannot be the basis for evading the obligation to pay the fee. Land tax payers are both private citizens and companies. But different rules and procedures for paying funds are established for them.

Who pays?

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

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

Companies pay this fee for the duration of their operation if they own land. You will have to transfer funds immediately after registration, and payments cease after the closure of the enterprise.

Land tax payers 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 with the right to life tenure;
• people using the territory on the basis of perpetual use;
• land ownership companies.

Citizens who receive land for free and urgent use are exempted from paying this fee. In addition, citizens who rent land are not land tax payers and therefore pay regular lease payments to it to a private owner or the state.

The legislation clearly establishes the terms during which funds should be transferred. If the time frame is violated, the Federal Tax Service will charge fines and penalties, which significantly increases the final amount of funds that will have to be transferred to the budget. Citizens must pay by December 1 of next year.

What changes were introduced in 2018?

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

Some significant innovations were introduced into the land tax calculation procedure:

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

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

Payment nuances for individuals

Land tax payers are citizens who can prove their right to the territory. They must officially register the land in Rosreestr. Based on this information, employees of the Federal Tax Service calculate the tax, and then send ready-made receipts to taxpayers at their address.

Citizens may not be involved in settlements on their own. If for any reason there is no notice from the inspection within the prescribed time, then the owners of the plots must independently come to the department of the Federal Tax Service to receive a document. The absence of a receipt cannot be a reason for non-payment of the fee. Under such conditions, the land owner will be held administratively liable.

Payers of land tax are only the 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 the following actions:

• an independent evaluation 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 shall file a lawsuit;
• a court session is held where the plaintiff must provide evidence of his innocence;
• if the court makes a positive decision for the citizen, the cadastral price is reduced, which leads to a reduction in the amount of tax;
• employees of the Federal Tax Service carry out recalculation, after which they issue a new receipt to the owner of the territory to pay the fee.

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

Nuances of calculation for companies

Land tax payers are not only citizens, but also various organizations. All companies with the right to pay the fee:

• property;
• lifetime inheritance;
• permanent use.

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

Benefits for companies

Land tax payers are organizations that use territories for different 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 take advantage of certain concessions from the state represented by benefits. Such benefits may be:

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

Company Tax Calculation Rules

Firms themselves make the calculations, so the organization’s accountant must 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 property, determined for any territory on January 1 of each year;
• for each site, the tax base is calculated separately;
• for calculation, a formula is used that assumes the multiplication of 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 lands intended for housing, subsidiary plots, or agricultural work, and for other territories the rate is 1.5%.

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

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

Privileges for private individuals

The NK lists citizens who are exempt from paying this fee. This includes persons:

• representatives of the peoples of the North who use the territory to preserve their traditional way of life or to engage in 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 are vulnerable. Usually this includes pensioners, large or poor citizens, WWII veterans or other persons.

Tax rates for individuals

Rates are determined by local authorities, but by default they vary from 0.025% to 1.5%. The amount of interest depends on the purpose for which the territory is used, as well as who acts as its owner.

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

Terms of payment

The time period over which this local tax is to be paid is set directly by the regional authorities. By default, citizens must transfer funds by December 1 of next year.

For companies, slightly different terms and calculation rules are provided. Typically, businesses transfer down payments on this collection quarterly. The final settlement is carried out in January, therefore, until February 1 of the next year, the remaining amount of the fee must be transferred to the local budget. Additionally, companies annually submit a declaration.

Responsibility for no 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 the territories. Even if citizens do not receive notifications from the Federal Tax Service, they themselves must take care of receiving a receipt.

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

Conclusion

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

If funds are transferred out of time, then this leads to the calculation of fines. Therefore, each taxpayer must responsibly approach his responsibilities to the budget.