The Southern Interregional Department of the State Tax Service for Work with Large Taxpayers notes that in accordance with Clause 288.1 of Art. 288 of the Tax Code of Ukraine dated December 2, 2010 No. 2755-VI as amended, the basis for charging rent for a land plot is the lease agreement for such land plot.

So, according to clause 288.5 of Art. 288 of the Tax Code of Ukraine (PKU), the amount of rent is set in the lease agreement, but the annual amount of payment cannot be less than the amount of land tax:

– for land plots, the normative monetary assessment of which has been carried out, in the amount of no more than 3 percent. of their normative monetary value, for public lands – no more than 1 percent. of their normative monetary value, for agricultural land – not less than 0.3 percent. and no more than 1 percent their normative monetary value;

– for land plots, the normative monetary assessment of which has not been carried out, in the amount of no more than 5 percent. of the normative monetary value of a unit of arable land in the Autonomous Republic of Crimea or in the region, for agricultural land – not less than 0.3 percent. and no more than 5 percent normative monetary assessment of a unit of arable land area in the Autonomous Republic of Crimea or in the region (clause 288.5.1 clause 288.5 of article 288 of the PKU);

– cannot exceed 12 percent. normative monetary assessment (clause 288.5.2 clause 288.5 of article 288 of the PKU);

– may exceed the maximum amount of rent established in paragraph 288.5.2 clause 288.5 of Art. 288 of the Civil Code, in the case of determining the tenant on a competitive basis (item 288.5.3 clause 288.5 of Article 288 of the Civil Code);

– for pastures in settlements that have been granted mountain status, it cannot exceed the amount of the land tax (item 288.5.4 of item 288.5 of article 288 of the PKU);

– for Olympic, Paralympic and De-Olympic training bases, the list of which is approved by the Cabinet of Ministers of Ukraine, cannot exceed 0.1 percent. normative monetary assessment (clause 288.5.5 clause 288.5 of article 288 of the PKU).

That is, the norms of Article 288.5 of Art. 288 of the PKU set the minimum and maximum limits of the amount of rent for land plots of state and communal property as a percentage of the normative monetary assessment.

At the same time, if the amount of rent specified in the lease agreement is lower than the amount established by Article 288.5. 288 of the Code of Civil Procedure, the lessee should apply to the relevant executive authority or local self-government body, with which the land lease agreement was concluded, about bringing it into compliance.

It should also be noted that the first, second, sixth, and eighth paragraphs of Clause 11 of Subchapter Chapter 6 XX “Transitional provisions” of the PKU temporarily, until January 1, 2035, it is established that in the part of the payment for land for land plots, the normative monetary valuation of which has been carried out, which are used in the framework of the implementation of investment projects with significant investments (except for investment projects in the fields of mining with the purpose of further processing and/or enrichment of minerals) in accordance with the Law of Ukraine dated December 17, 2020 No. 1116-IX “About state support of investment projects with significant investments in Ukraine”, local self-government bodies can, in particular:

– to set the rent for state and communally owned land in an amount smaller than the amount of land tax established by the decision of the relevant local self-government body for a certain category of land, which is paid in the relevant territory.

In case of reaching the total amount of state support for an investment project with significant investments, the taxpayer – investor with significant investments loses the right to apply the benefit specified in clause 11 of subsection Chapter 6 XX “Transitional Provisions” of the PKU.

When reaching the total amount of state support for an investment project with significant investments during the reporting (tax) period, the taxpayer – an investor with significant investments is obliged within 20 calendar days from the date of entering the relevant information into the register of investment projects with significant investments to submit a clarifying tax declaration for such a reporting (tax) period, in which to increase the tax liability for the payment of land fees for the period starting from calendar month in which the total amount of state support for an investment project with significant investments is achieved.

At the same time, until the date of making changes to the lease contracts of land plots used as part of the implementation of investment projects with significant investments, in connection with the achievement of the total amount of state support for the investment project with significant investments, the amount of rent for the calculation of tax liabilities from the rent is determined according to the rules defined in Article 288.5. 288 of the PKU.

Source: www.visnuk.com.ua