Every citizen is obliged to pay taxes to the country's budget, which is a payment for the use of social services offered by the state. A wide variety of objects can be accepted as a taxable base. Changes are constantly taking place in this area, which are recommended to be monitored. For example, the recent adoption of the cadastral value of a land plot as the basis for calculation has significantly increased the amount of tax that must be paid. Consequently, the question of what can count on land tax benefits has become even more relevant. Representatives do not forget about vulnerable segments of the population and separately highlight the conditions for their taxation in the adopted legislative acts. These preferences will be discussed in this article.
Legislation
Who establishes tax benefits?
The conditions for providing benefits and the full list of citizens entitled to receive them are stated directly in the Tax Code of the Russian Federation, Chapter 32 . Taxation benefits are established by the current code of the Russian Federation and normative representative acts of local government bodies.
The Tax Code provides benefits for land tax
The Tax Code provides for the deduction of a mandatory payment for each plot of land that is in common shared ownership and involves the provision of benefits for a limited number of persons prescribed in the Tax Code of the Russian Federation.
Land plots are not recognized as objects of taxation:
- land property that was seized in connection with a decision of the legislation of the Russian Federation;
- which contain valuable monuments of the country's cultural heritage that are on the World Heritage List, as well as large nature reserves of the Russian Federation, historical museums and reserves, and the archaeological heritage of the Russian Federation;
- which have become invalid;
- which are part of the forest fund;
- where there are water bodies that belong to the Russian Federation and are included in the country’s water fund;
- which are included in the common property of apartment buildings.
What is the land tax rate
Payment for land is calculated from the cadastral value of the land. The land tax rate can be 0.3 and 1.5% of the cadastral* value of the land plot - this depends on certain conditions of land use.
Tax 0.3% applies to the following lands:
- used in agricultural applications;
- purchased for the construction of residential premises, housing stock;
- purchased for subsistence farming;
- limited in free use by the Russian Federation state.
In other cases, the land tax is 1.5% of the cadastral* value of the plot.
*price of a land plot established as a result of state assessment.
Legislative regulation
Land tax is a free payment of funds to the local or state budget. This type of fee is levied on both individuals and legal entities.
The taxpayer pays land tax at least four times during the year. The amount and rate of tax are set at the federal level using the Tax Code. In local self-government bodies, the same rate is adjusted up or down, based on the Tax Code of the Russian Federation.
Legislative regulation of the tax rate:
- Tax Code of the Russian Federation, this is evidenced by each article 31 of chapter of this legislative document.
- Regulatory acts of municipalities.
Local governments establish the exact groups, categories of citizens and enterprises that are provided with benefits for paying this budget fee. The same authorities regulate rates, payment deadlines and tax dates.
Who is eligible for land tax benefits in 2021?
Only a certain group of the population enjoys land tax benefits, namely:
- elderly people (pensioners);
- disabled people who have 2nd and 3rd disability groups;
- individuals who have the right to receive social support from the state due to a difficult life situation;
- families who have lost their breadwinner who served in the military defense of the Russian Federation;
- military personnel who were removed from military defense service due to health conditions or at the end of their service period;
- land tax benefits can be provided to large families and low-income families;
- single-parent families (in the absence of one of the parents or guardians).
The listed population group also has a tax break for a summer cottage.
Who is exempt from paying land tax
Residents of the northern regions of Russia and the Far East do not pay mandatory state land contributions. As well as the category of citizens exempt from paying land tax:
- heroes of the Soviet Union and the Russian Federation;
- veterans of the Great Patriotic War and other combat veterans;
- disabled children and people with disabilities since childhood;
- disabled people of 1st and 2nd disability groups;
- people who are registered with the Russian healthcare system due to radiation burns received during the disaster at the Chernobyl nuclear power plant (Chernobyl victims);
- people who were directly involved in the development, testing, and exercises of any nuclear installations and as a result suffered health complications (participants in nuclear tests).
Many pensioners often wonder whether land up to 6 acres in size is taxed. According to federal law, starting from 2021, pensioners are exempt from paying state payments for land plots of less than 6 acres of land.
Tax benefits for pensioners
Land tax benefits are available to old-age pensioners: older people in Russia have the right to receive tax benefits on the land issue. More than 15 million pensioners use the proposed “discounts” every year, because such tax discounts for pensioners on land make life much easier and allow them to save money.
If the land plot is less than 6 acres, then pensioners do not need to pay a mandatory payment for it.
If the plot size is larger, then the cost of this payment is calculated from the remaining area of land.
The pensioner also needs to pay land tax if he has more than several properties at his disposal. In this case, he must select one object from each category to which the benefit will apply (apartments, houses, garages, and so on).
Are military pensioners exempt from making mandatory payments on land property?
Military pensioners also pay a mandatory state contribution for land, taking into account the fact that they can receive benefits in the form of partial or complete tax exemption.
For veterans and disabled combatants, as well as for several other groups of the population, a reduction in the tax base of 10 thousand rubles is provided.
Labor veterans are not exempt from paying land taxes. Only a few categories of people have the right not to pay land tax, which does not include labor veterans:
- heroes of the USSR and the Russian Federation;
- disabled people of the first and second groups;
- disabled children;
- war veterans;
- people affected by the Chernobyl accident.
General procedure for provision
To receive a benefit, an organization or individual must justify its right to it. There is a special procedure, the completion of which allows you to receive tax breaks or be completely exempt from paying fees for an existing plot.
Government benefits are provided according to the following scheme:
- A taxpayer included in a preferential category collects a package of documents that prove his right to reduce the tax base.
- An application is written asking for benefits.
- The entire package is submitted to the Federal Tax Service, where it is reviewed for compliance with legal standards.
- A decision is made to provide the required or reject the request with justification.
The beneficiary does not have to submit documents for consideration annually; usually he receives the right to reduce the base indefinitely, until circumstances change.
How to apply for tax benefits
To apply for the benefits specified in the article, you must:
- contact the tax office yourself;
- send an application by mail;
- fill out an application through your personal account on the website of the Federal Tax Service;
- register an application through the MFC (multifunctional center).
If registration takes place in person, through a visit to the tax office, then you need to take documents confirming your rights to benefits. If online, then send documents electronically.
The application form for land tax benefits can be found here:
- take it from the tax office itself;
- download from the tax service website;
- download from the link below on our website.
Applications
The application will need to indicate general provisions :
- FULL NAME.;
- passport series and number;
- Date and place of birth;
- phone number;
- date of issue of passport and so on.
Also indicate at the bottom of the application who you are (the taxpayer or his representative), full name, transcript and signature. Then the tax officer signs and sends the application for processing.
filling out an application
How to calculate land tax
To calculate the land tax, you need to multiply everything:
- cadastral value;
- your share;
- tax rate;
- ownership coefficient.
The result should be a number that corresponds to the tax levy on your plot of land.
Land plot = cadastral price of a land plot * share of a land plot * tax rate * land ownership coefficient.
The tax rate can be found on the website of the Federal Tax Service. Automatic calculation of the tax amount can also be done on the Federal Tax Service website.
Deadlines for payment of ZN
Individuals and legal entities have different deadlines for paying taxes.
- Individuals receive postal notifications specifying the amount, the deadline for paying the tax, and indicating the land plot that is subject to taxation. The tax is charged for the previous period and must be paid at the end of November. From the first of December, fines will be collected the following month for failure to pay taxes on time.
- Legal entities are required to pay the tax either once a year, or divide the payment into four times and pay this amount once a quarter. Organizations independently calculate the tax amount and submit the report to the tax service. The payment must be paid before the first of February.
How to reduce land tax for an individual
Reducing land taxes can be quite difficult, since the tax depends on the cadastral value of the land and experts rarely make mistakes in the assessment characteristics of a land plot. However, this can be done in several ways:
- if you go to court and try to appeal the assessment of the land plot. In this case, the correctness of the calculations of the cadastral value of the land will be disputed, in which an examination will necessarily be carried out and the land will be assessed by experts in the event of an automatic error, it will be brought in accordance with the calculation standards;
- A reduction in land tax is also possible when renting out a plot. In this case, the owner may not pay the full cost of the tax, since it will be reduced;
- You can reduce the payment using benefits for certain groups of the population (listed above).
It is worth keeping in mind that going to court does not guarantee a positive outcome of the case and it often happens that, on the contrary, the cadastral value is added to the land plot after the trial, due to the fact that the expert gave an incorrect assessment.
Who is obliged to pay
According to Part 1 of Art. 388 of the Tax Code, any persons (individuals or legal entities) who have a plot must pay the tax in question:
- on the right of personal property;
- on the right of existing unlimited use;
- or on the right of lifelong inherited ownership.
Those taxpayers whose land plots are not subject to taxation (Part 2 of Article 389 of the Tax Code) do not have to pay. For example, tax is not charged on lands withdrawn from circulation in accordance with Art. 27 Land Code of the Russian Federation.
How to pay land tax
With a tax notice, you can go to any nearest bank or bank terminal and pay the state land tax. But you can also pay:
- through a special service on the Internet;
- on the tax service website;
- via online banking.
Recently, you can also pay taxes on the government services website (where you need to register for the first time or pay through your existing personal account).
