Full texts of letters of Ministry of Justice of Ukraine are provided in the publication from 25.09.2006 of No. 31-32/174 and from 10. 11.2006 of No. 31-32/191 giving an explanation of item 15 of section 10 of the Land code of Ukraine (concerning possibility of purchase and sale of the land lots of a personal country economy and the comment to them.
TWO LETTERS of MINISTRY OF JUSTICE of UKRAINE AND PURCHASE AND SALE of LANDS FOR MAINTAINING LKH
The main statutory act regulating the public relations in the sphere of a turn of lands, the Land code of Ukraine (Code) which adopted in 2001 and has come into force since January 1, 2002 is. This Code, in particular (Art. 19), establishes categories of lands (the earth of agricultural appointment, inhabited and public building, wood fund, water fund, etc.) and also a type of use (the term applied by some experts) of lands within one category. So, the agricultural appointment earth by a type of use it is possible to divide into lands of agricultural enterprises (Art. 28), a farm (Art. 31), the earth (land lots) of personal country farms (Art. 33), for mowing and a pasture of cattle (Art. 34), for gardening (Art. 35), truck farming (Art. 36 of the Land code of Ukraine).
In addition, within category of lands of agricultural purpose allocate lands for commodity agricultural production, i.e. agricultural products directly intended for production for the purpose of its further commercial use, occupation by an entrepreneurial activity in the agrarian sphere (the land lots of agricultural enterprises and farms concern them) and other, for conducting not commodity agricultural production, mainly in personal non-commercial purposes (the earth of personal country farms, for conducting gardening, truck farming). According to this classification, within category of lands of agricultural purpose records in the corresponding column of the State act of an ownership right on the earth which, in turn, defines legal status of the land lot now are made.
In the conditions of action of the moratorium on sale of some types of the land lots (item 15 of Transitional provisions of the Code), the classification given above has essential value. According to the mentioned norm, owners of sites for maintaining a country (farmer) economy and other commodity agricultural production, and also owners of the ground shares which have not been taken out in nature (on the district), have no the rights to sell or otherwise to alienate the sites to the term established by the law – on January 1, 2007.
For this reason special value gets interpretation of item 15 of Transitional provisions of the Land code of Ukraine. For this purpose the Ministry of Justice of Ukraine published two missives, which texts we bring below.
I.Lisova, leading lawyer KGAUKC.
MINISTRY OF JUSTICE OF UKRAINE
the letter from 25.09.2006 of No. 31-32/174
To chiefs of Head department of justice of the Ministry of Justice of Ukraine in the Autonomous Republic Crimea, regional, Kiev and Sevastopol city justice departments
Due to the receipt in the Ministry of Justice of Ukraine of inquiries concerning the restrictions established by point 15 of Transitional provisions of the Land code of Ukraine (further – the Code), the Ministry of Justice considers necessary to report the following.
According to part one of article 22 of the Code, lands of agricultural purpose the lands provided for production of agricultural production, implementation of agricultural research and educational activity, placement of the corresponding production infrastructure or intended for these purposes admit.
According to the point "a" of a part of the third specified article of the Code, the earth of agricultural purpose are transferred to the possession and provided in using to citizens: for maintaining a personal country economy; gardenings; truck farming; mowing and cattle pasture; maintaining commodity agricultural production.
Proceeding from a preamble and part one of article 1 of the Law of Ukraine About a farm, production of commodity agricultural production, its processing and realization in the internal and external markets for the purpose of receiving profit are provided by maintaining by citizens of a farm. Such activity is enterprise.
At the same time, according to article 1 of the Law of Ukraine About a personal country economy the activity connected with maintaining a personal country economy, doesn’t belong to an entrepreneurial activity. Maintaining by citizens of a personal country economy is carried out for the purpose of satisfaction of personal needs by production, processing and consumption of agricultural production, realization of its surpluses and rendering of services in use of property of this economy, including in the sphere of rural green tourism.
According to subparagraphs 4.3.36 of point 4.3 of article 4 of the Law of Ukraine About a tax on the income of individuals the income of alienation by directly owner of agricultural production (including production of primary processing), grown up (made) by it on the land lots provided, in particular, for maintaining a personal country economy if their size wasn’t increased as a result of received in nature (by districts) a ground share (share) doesn’t join in structure of the total monthly or annual taxable income of the taxpayer.
Taking into account stated, the restrictions established by point 15 of section X-th Transitional provisions of the Code, extend on the land lots which are in a property of citizens and are intended for maintaining a personal country economy if to it are attached allocated in nature (on the district) ground shares (shares).
MINISTRY OF JUSTICE OF UKRAINE
the letter from 10.11.2006 of No. 31-32/191
To chiefs of Head department of justice of the Ministry of Justice of Ukraine in the Autonomous Republic Crimea, regional, Kiev and Sevastopol city justice departments
In addition to the letter of the Ministry of Justice of Ukraine from September 25, 2006 of No. 31-32/174 is considered to explain the following repeatedly necessary.
According to part one of article 22 of the Land code of Ukraine (further – the Code) lands of agricultural purpose the lands provided for production of agricultural production, implementation of agricultural research and educational activity, placement of the corresponding production infrastructure or intended for these purposes admit.
According to the point "a" of a part of the third specified article of the Code, the earth of agricultural purpose are transferred to the possession and provided in using to citizens:
– for maintaining a personal country economy;
– gardenings;
– mowing and cattle pasture;
– maintaining commodity agricultural production.
As the restrictions provided by point 15 of Transitional provisions of the Code, concern only land lots for maintaining a country (farmer) economy and other commodity agricultural production, we consider that requirements of this point don’t extend on the land lots for conducting gardening and for maintaining a personal country economy.
N. Krukoves, director of the department of a notariate and registration of lawyer associations.