Main points
- Owners of land plots must pay tax even if the plot is not used, in accordance with Article 287.1 of the Tax Code of Ukraine.
- Exceptions are only possible if there are benefits, such as for pensioners or people with disabilities, or by leasing or alienating the land.
Land tax / Photo by Pixabay
Land owners are required to pay tax regardless of whether they actually cultivate the land. The obligation arises from the moment of acquisition of ownership or permanent use in accordance with the legislation.
Do I have to pay tax on idle land?
Lawyer Ihor Skrybka, in a commentary for Channel 24, said that land issues traditionally remain among the most common requests from citizens. According to him, the issue of paying tax for land that is not actually used requires special attention.
Igor Skrybka
Lawyer of AB “Ivan Khomych”
The answer is quite unexpected for many, since land tax is not paid in connection with the fact of cultivation or use of the plot, the obligation to pay arises in the presence of ownership or permanent use, which directly follows from Article 206 of the Land Code of Ukraine, which establishes the principle of payment for the use of land, as well as from Articles 269 and 270 of the Tax Code of Ukraine.
According to him, they determine that the payers are the owners of land plots and permanent land users, and the object of taxation is the land plot itself, in accordance with Article 287.1 of the Tax Code of Ukraine, the obligation to pay arises from the date of acquisition of the right to the land.
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That is, even if the “garden” is not planted and is not actually used, this does not exempt it from tax,
– adds the lawyer.
Please note! The specialist notes that exceptions are possible only in the case of the availability of benefits provided for in Article 281 of the Tax Code of Ukraine (for example, for pensioners by age, persons with disabilities of groups I–II, participants in hostilities – within the established area norms), and the alternative may be the transfer of the plot for rent or its alienation, but “non-use” in itself has no legal significance.
Land lease tax traps: who should pay by law?
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The tenant is a tax agent and is required to withhold personal income tax (PIT) and military levy from the rent.
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Income from the lease of land is taxed at the time of its accrual (payment) by the tenant.