Land tax 2023 for legal entities

Tax law is one of the topics in which clients turn to lawyers. It is among the specializations of the Prikhodko&Partners law firm. So, in this context, let's talk in more detail about such an issue as land tax for legal entities. And we will also touch on what to do if you have received a tax notice-decision. We help our clients with such requests qualitatively and efficiently.

Who pays this tax and how is this issue regulated?

Art. 269 of the Civil Code defines that land tax payers are the owners of land plots and shares, as well as users. Art. 287 states that they pay this tax from the moment when the right of ownership or use arises.

In the 288th century The Tax Code of Ukraine refers in more detail to the rent for state and communal land. As for the specifics of such a lease, it is defined in Art. 16 of the Law "On Land Lease". There is a detailed description of the procedure for concluding a relevant contract with local self-government bodies or executive authorities.

What is the amount and rates of land tax?

Tax rates are differentiated depending on where the plot is located. Also, an important factor that affects the size is the normative assessment of the site or its absence. Clauses 274.1, 274.2 and 277.1 the Tax Code of Ukraine establish what the maximum tax rates are. They cannot be exceeded. However, such rates may well be lower if local self-government bodies decide so.

For example, when it comes to a plot of land (except for communal and state property), which is located within or outside the boundaries of a settlement, the maximum tax rate is 12% when the normative assessment is carried out. And if the plot is located outside the settlement and its regulatory assessment has not been carried out, the tax cannot exceed 5%.

If you are interested in rates for other types of land and a more detailed calculation, the lawyers of the law firm "Prikhodko&Partners" are ready to answer such questions in a consultation format.

Land tax payment term

This tax is paid in equal installments every month. This happens according to the location of the plot. Payment must be made every month within 30 calendar days following the last calendar day of the reporting month.

What will happen if the tax is not paid?

If you do not pay the land tax on time, your legal entity may receive a tax notice-judgment (TRN). Anyone who receives such a decision can appeal it to a higher authority of the State Tax Service. This is provided for in Art. 55 the Tax Code of Ukraine.

When our team of lawyers offers you legal support services for such issues, we are ready to provide the State Tax Service with relevant explanations and formulate them in a sufficiently convincing manner. This method of appealing the Tax Notice-Decision is called administrative. However, there is still a judicial appeal. And it has to be used often enough when the Tax Notice-Decision is groundless.

When we go to court, we competently prepare a statement of claim and defend the rights of our clients. We regularly participate in such cases, so we know an effective algorithm of actions. Get in touch and get all the benefits from the fact that your interests will be protected by a team with great experience, which specializes in such cases.