In this publication the tax matters of lands of farms are shined, and also privileges are established by again created farm.
The farm uses the land lots belonging on the right of private ownership to citizens – to members of a farm
The farm uses the land lots belonging on the right of private ownership to citizens – to members of a farm. Besides, at the beginning of 2005 the economy received the land lot in the area of 20 hectares under lease for maintaining commodity agricultural production. What privileges the economy can use at the earth taxation if it is on the general system of the taxation?
The farm is a form of an entrepreneurial activity of citizens with creation of the legal entity which expressed desire to make commodity agricultural production, to be engaged in its processing and realization for the purpose of receiving profit on the land lots provided by it for maintaining a farm, according to the law (Art. 1 of the Law of Ukraine About a farm from 19.06.2003 of No. 973-IV (with changes and additions), further – the Law No. 973-IV).
According to parts of the first and second Art. 31 of the Land code of the earth of a farm can consist of the land lots which belong on an ownership right to a farm, as to the legal entity; the land lots which belong to citizens – to members of a farm on the right of private ownership; the land lots which are used by a farm under lease.
According to Law No. 973-IV Art. 15 farms in which property there are the land lots provided by it for maintaining a farm, are obliged to provide, in particular, use of the land lots on their designated purpose, not to break the rights of owners of the adjacent land lots and land users, to pay taxes and fees.
If the farm is on the general system of the taxation, it should pay taxes and fees (obligatory payments), defined by the Law of Ukraine About taxation system from 25.06.91 of No. 1251-XII (with changes and additions), in particular, the land tax and/or a rent for the earth.
The taxation of the earth is carried out according to the Law of Ukraine About a payment for the earth from 03.07.92 of No. 2535-XII (in edition of the Law of Ukraine from 19.09.96 of No. 378/96-BP, with changes and additions, further – the Law No. 2535-XII) which defines an order of the taxation of lands of agricultural purpose, lands of settlements and the land lots which are outside of settlements, establishes taxation rates for different categories of lands and a privilege in the taxation for separate categories of payers and categories of lands.
According to a part of the second Art. 12 of the Law No. 2535-XII, the payment for the land lots of the farms occupied with young gardens, yagodnik and vineyards to their entry into a fructification time, and also hybrid plantings, genofondovy collections and nurseries of long-term plantings isn’t raised.
At the same time in connection with adoption of law No. 973-IV changes in the Law No. 2535-XII are made, in particular, part one of Art. 12 is added with item 25 to which it is established that again created farms are released from the land tax for three years, and in trudonedostatochny settlements – five years since transfer of the land lot by it in a property. As it is established to Art. 125 of the Land code, the ownership right on the land lot makes sure the state act.
Concerning the taxation of the land lots which are used by a farm under lease (which lessors the relevant village, settlement, city councils or public administrations), are, how is defined by Art. 21 of the Law of Ukraine About a ground lease from 06.10.98 of No. 161-XIV (in edition of the Law of Ukraine from 02.10.2003 of No. 1211-IV, with changes and additions), the size of this payment is established by agreement of the parties in the lease contract between the lessor and the tenant. Thus, the annual rent for such land lots can’t be less than a size of the land tax which is established by the Law No. 2535-XII, and also shouldn’t exceed 10 % of their monetary assessment. In case of definition of the tenant on competitive bases it can be established and the bigger size of a rent.
Besides, according to item 6 of Transitional provisions of the Land code, at renewal of the right of continuous using by the land lots provided for maintaining country (farmer) farms in a long-term lease, the size of a rent for the land lots shouldn’t exceed the size of the land tax established by the Law No. 2535-XII.
E.Grivnak, the head of department of administration of payments at land use both the local taxes and meetings of Department of the profits tax and other taxes and collecting (obligatory payments) DPA of Ukraine
(On magazine materials Messenger of tax service of Ukraine).