Everyone knows that all individual entrepreneurs registered in the Russian Federation pay taxes. Taxes are mandatory contributions and payments that individual entrepreneurs pay to the state. In our publication today we will look at land tax for individual entrepreneurs in 2018.
All land owners should pay attention to the fact that they must pay part of their income towards land tax. Let us remind you that land tax refers to local taxes. This means that the purpose of collecting this tax is to fill the budgets of local governments.
Local authorities have the power to determine:
- tax rate;
- tax payment deadline;
- tax payment procedure;
- tax benefits.
The objects of taxation in this case are plots of land located in the area of municipal cities. More specifically, these are areas of land that are:
- in lifelong (inherited) use;
- in constant use.
More detailed information on this issue is contained in the Tax Code (Article 389).
Who is the payer of land tax?
The payer of land tax is the owners of land plots who carry out any activity in the taxable territory. Thus, land tax payers are:
1. Individuals, including individual entrepreneurs. 2. Legal entities.
In the case of land plots included in the property of a mutual fund, management companies are recognized as payers of land tax.
Land tax is not paid by those persons to whom land plots were transferred for free, fixed-term use or under a lease agreement.
In accordance with the current legislation of the Russian Federation, despite the fact that land tax rates are within the competence of municipalities, the maximum rate cannot be more than 0.3% in relation to the following taxable territories:
- personal subsidiary plot;
- housing stock;
- agricultural lands.
In relation to land plots for other purposes, the land tax rate cannot be higher than 1.5%.
Payment benefits
The state has created benefits for paying taxes on land plots for certain categories of citizens. Exemption from contributions is carried out on a full or partial basis.
The tax base for the following persons is reduced in the amount of 10,000 rubles:
- Disabled people of groups 1 and 2;
- Disabled since childhood;
- Heroes of the USSR or the Russian Federation;
- WWII veterans;
- Participants in man-made disasters and persons taking part in their liquidation (persons exposed to radiation).
For these categories, 10,000 rubles are deducted from the tax base. Also, each region can establish additional benefits. For example, in some areas there is a regulation establishing the area of the plot that is not subject to tax.
If the plot is larger than this area, then only a contribution is paid for the difference between the actual size and that established by law. For those whose plot is less than or equal to the area specified in the legal document, the tax is equal to zero.
If you are the owner of several plots in different regions, then you are entitled to benefits for each individual plot. If you own lands within one subject of the Russian Federation, then you can use only one of them for preferential tax purposes.
Land tax for individual entrepreneurs in 2021: main changes
All changes made to the Tax Code (including paragraph 1 of Article 398 of the Tax Code of the Russian Federation) and Article 2 of the Federal Law dated November 4, 2014 No. 347-FZ came into force on January 1, 2015.
Starting from 2015, individual entrepreneurs do not need to submit land tax returns.
The tax for land (which is owned by an individual entrepreneur) will now be paid by individual entrepreneurs based on the requirement of a tax notification until October 1 of the year following the reporting year, that is, by October 1, 2021, individual entrepreneurs must pay the land tax for 2021.
The deadline for paying land tax for ordinary individuals is set by local authorities and indicated in the tax notice.
Unlike individual entrepreneurs, legal entities still have the obligation to submit a land tax return. The deadline for filing a return for 2021 is February 1, 2021.
The deadline for payment of land tax by legal entities is set by local authorities; in some regions, land tax must be paid quarterly.
In 2021, the tax authorities plan to calculate land tax and send the relevant data to individual entrepreneurs and individuals for payment for 2021.
The tax base for determining the amount of land tax for 2017 is the cadastral value of the land plot as of January 1, 2021 (clause 1 of Article 391 of the Tax Code of the Russian Federation). This calculation applies if during 2021 the following did not change:
- category of land;
- type of permitted use.
If during the year changes were made to the USRN according to the above indicators, then:
From January 1, 2021, when calculating land tax, the cadastral value is taken, which was determined on the date of registration of its change in the Unified State Register.
Taking into account this new procedure, the tax amount is determined based on the ownership coefficient (Q).
- Kv = Km/Kpm;
- Km - the number of full months from the date of entering information about the cadastral value into the Unified State Register of Real Estate;
- Kpm - The number of calendar months in the tax (reporting) period.
The BCC for paying land tax depends on the location of the land plot.
The following BCCs have been determined for 2021:
182 1 06 0603X XX 1000 110, where the indicator X XX depends on the location of the site:
for a land plot located within the boundaries of intra-city municipalities of the cities of Moscow, St. Petersburg and Sevastopol:
- tax 18210606031031000110
- penalties 182 1 06 06 031 03 2100 110
- fine 182 1 06 06 031 03 3000 110
for a land plot located within the boundaries of urban districts:
- tax 18210606032041000110
- penalties 182 1 0600 110
- fine 182 1 0600 110
for a land plot located within the boundaries of urban districts with intra-city division:
- tax 18210606032111000110
- penalties 182 1 0600 110
- fine 182 1 0600 110
for a land plot located within the boundaries of intracity districts:
- tax 18210606032121000110
- penalties 182 1 0600 110
- fine 182 1 0600 110
for a land plot located within the boundaries of intersettlement territories:
- tax 18210606033051000110
- penalties 182 1 0600 110
- fine 1 82 1 0600 110
for a land plot located within the boundaries of rural settlements:
- tax 18210606033101000110
- penalties 182 1 0600 110
- fine 182 1 0600 110
for a land plot located within the boundaries of urban settlements:
- tax 18210606033131000110
- penalties 182 1 0600 110
- fine 182 1 0600 110
CONFIRMATION OF THE RIGHT TO LAND TAX BENEFITS IN 2018
The right to apply land tax benefits is determined by Article 395 of the Tax Code of the Russian Federation. In addition to the categories listed in this article of the Tax Code of the Russian Federation, the legislation gives the right to municipal authorities to independently decide which categories of citizens to provide benefits for paying land tax.
Law No. 286-FZ dated September 30, 2017 amended the Tax Code of the Russian Federation in terms of confirming the right to land tax benefits. From January 1, 2018, to receive the benefit, there is no need to submit documents to the Federal Tax Service confirming the ability to apply this benefit.
Order of the Federal Tax Service of the Russian Federation No. ММВ-7-21/897 dated November 14, 2017, which entered into force on January 1, 2021, approved a new form of application for land tax benefits.
Thanks to this form, the owner of the land plot has the right to choose whether to provide the Federal Tax Service with title documents for the plot and to receive benefits, or indicate the details of these documents in the application.
If you indicate the details of title documents without attaching them to the application, employees of the Federal Tax Service will independently send a request to the authorities that issued these documents. Further, if you are registered in the taxpayer’s personal account, then information on the consideration of an application for a benefit can be obtained by logging into your personal account.
If you still do not have an account in your personal account on the Federal Tax Service website, then you will receive a response in one of the following ways:
- in person at the tax office or at the MFC;
- by mail.
New declaration form is in effect
The innovation in land tax for legal entities from 2021 concerns the submission of a declaration for the period 2021 in a new form and format. They, as well as the procedure for filling them out, are now fixed by order of the Federal Tax Service dated May 10, 2021 No. ММВ-7-21/347.
The table below lists the main adjustments that have occurred in the land tax return form for legal entities since 2021:
| Declaration section | New declaration form | The previous form of the declaration (approved by order of the Federal Tax Service dated October 28, 2011 No. ММВ-7-11/696) |
| Title page | Removed the field for OKVED codes | There was a field for the OKVED code |
| Section 2 | Line 050 was supplemented with the indicator “Standard price of land” (filled out for plots in Crimea and Sevastopol) | Line 050 provides only the indicator “Cadastral value of a land plot” (it is not possible to indicate the standard price of land) |
The total number of lines is 25. The following lines are missing:
| Total number of lines – 28 |
You can check the correctness of filling out the land declaration in 2018 using special control ratios for it. They are confirmed by letter of the Federal Tax Service of Russia dated July 13, 2021 No. BS-4-21/13656.
Also see “What will change in 2021: taxes, insurance premiums, reporting, accounting and a new fee.”
Responsibility for non-payment of land tax
The amount of the fine for non-payment of land tax depends on whether the non-payment is intentional or not. Moreover, this will have to be proven in court.
For unintentional non-payment or underpayment of land tax, you will have to pay a fine of 20% of the tax amount or the amount of underpayment. For intentional non-payment of land tax, the fine is doubled and amounts to 40% of the amount of unpaid land tax.
In case of overpayment, the overpaid amount will automatically be offset against the next payment.
The material has been edited in accordance with changes in the legislation of the Russian Federation 01/26/2018
Who doesn't pay tax
In addition to the current benefits for the population, there is also the possibility of complete exemption from paying contributions.
This rule applies throughout the Russian Federation and applies to areas:
- Managed by the forest fund;
- Seized as a result of a decision of local authorities (for example, for the purposes of a nature reserve or the disposal of radioactive waste);
- Limited in use (occupied by cultural heritage or natural water bodies);
- Used for highways;
- Being the common property of an apartment building;
- Available for free use;
- Rented (in this case the owner of the plot pays the tax);
- Inhabited by small numbers of indigenous people (if the plot is used for living and conducting their own fishing).
The owner has the opportunity to reduce the value of the tax base. This is due to the cadastral value, which may not always be adequate.
If you think that the price of your plot is too high (and the higher it is, the higher the tax to be paid), you need to invite an independent appraiser who, based on experience and knowledge, will draw up a document on the real value of the property.
With the received certificate, you need to contact the commission for the consideration of such disputes. If the issue is not resolved in your favor pre-trial, then it is necessary to file a statement of claim.
This might also be useful:
- simplified tax system for individual entrepreneurs in 2021
- Tax system: what to choose?
- UTII for individual entrepreneurs in 2021
- Calculation of income tax from salary
- General taxation system for individual entrepreneurs
- Unified agricultural tax for individual entrepreneurs and organizations
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Tax amount
There is a simple formula to calculate the contribution payable:
Land tax = tax rate adopted in the region * cadastral value of the plot.
The cadastral price is updated on the 1st day of the reporting year (the one for which the tax must be paid).
For example, the cadastral value is 578,000 rubles. The tax payable at a rate of 0.3% will be; 578000*0.3% = 1734 rubles. If a rate of 1.5% is applied, then the tax will be equal to: 578,000 * 1.5% = 8,670 rubles.
The cadastral value and the applicable tax rate will be indicated on the payment receipt. If you have payment benefits, they must be recorded with the tax office. To do this, you will need to collect a package of documentation confirming the availability of benefits and provide it to the operator for further accounting.
Certain cases of tax payment
Let's consider non-standard situations of paying land taxes. The first such case is taking into account the mandatory contribution for joint ownership of a plot. If there are several owners of one plot, then they pay land tax in proportion to their share.
Example. You own a plot of 75 square meters. Your plot is part of one large plot of 238 square meters. The total cadastral value of the land is equal to 300,000 rubles. Since the plot is used for breeding livestock for sale, the tax rate is 0.3%. First you need to calculate the cadastral value of 75 square meters. It is equal to: 300,000*75/238 = 94,538 rubles. The tax amount will be: 94538*0.3% = 283 rubles.
It is important to understand that if you are the owner of the participant jointly with the state authorities, you will pay tax on the entire plot. Even if you only use a small plot, the fee will be charged on all square meters.
This is due to the peculiarities of state ownership of land. Local authorities are limited in the ways they can dispose of land, and therefore are exempt from paying taxes.
Let's consider the second case, when the plot was in your ownership for an incomplete number of years.
Example. The plot was purchased on May 23, 2021. On January 1, 2021, the cadastral value was 652,000 rubles. The region has a rate of 0.3%. For tax purposes, only the months from June to December are accepted, since the property was purchased in the second half of May. We get the amount of tax to be paid: 652000*0.3%/12*7 = 1141 rubles.
There are also situations in which, when paying land tax, both benefits and an incomplete number of months of use of the site are taken into account.
Example. A disabled person of the 1st group registered an individual entrepreneur in August 2021. For business purposes, a citizen acquired a plot of land on November 19, 2021. The cadastral value of the land is equal to 523,000 rubles. The local administration has established a tax rate for this plot of 0.9%. To calculate the tax required to be paid in 2021, it is necessary to calculate the tax base. It will be (taking into account the benefit of 10,000 rubles for a disabled person of the 1st group): 523,000 - 10,000 = 513,000 rubles. The plot was owned for 1 full month. The tax amount will be: 513000*0.9%/12*1 = 385 rubles.
