Land tax is one of the key mandatory payments for businesses that own or use land plots. Its amount is determined based on the normative monetary valuation (NMV) or the area of the plot, and the payment procedure is regulated by the Tax Code of Ukraine. In this article, we will examine how legal entities can find out the accrued amount, what benefits they have, and how to properly make payments.
What is Land Tax
Land tax is part of the property tax paid by owners or users of land plots. Since 2015, it has been classified as a local tax, so rates and benefits are established by local government authorities.
The objects of taxation are:
- land plots owned by the company;
- land plots received for permanent use;
- land shares (units) registered to a legal entity.
The basis for calculation includes:
- data from the State Land Cadastre;
- extracts from the State Register of Property Rights;
- legal documents (state acts, contracts, certificates);
- local council decisions on rates and benefits.
Read also: Farm Enterprise: What It Is, Types, How to Name and Register
Land Tax Payers
The obligation to make payments applies to:
- enterprises that own land plots;
- users of state or communal lands with permanent use rights;
- lessees of state and communal lands (through rent payments equivalent to land tax).
For newly created legal entities, the tax is paid from the month following the acquisition of ownership or use rights.
Which Legal Entities are Exempt from Payment
The following are exempt from land tax:
- sanatorium and health facilities of public organizations for persons with disabilities;
- disability organizations and their enterprises that are fully owned by them;
- Olympic and Paralympic training bases;
- preschool and general education institutions;
- institutions of science, culture, healthcare, social protection, and sports that are maintained by budget funds;
- state and communal children’s health facilities listed in the Non-Profit Register.
Additionally, local councils may approve additional benefits for communal institutions and enterprises.
How to Calculate the Tax Amount for Legal Entities
If Normative Monetary Valuation (NMV) Has been Conducted
The base is the NMV of the plot considering the indexation coefficient.
Rates:
- up to 3% of NMV — for most lands;
- 0.3-1% — for agricultural lands;
- 0.1% — for forest lands;
- up to 12% — for plots in permanent use by commercial entities.
If NMV Has not been Conducted
The base is the plot area. Then the rate is determined as a percentage of the regional arable land NMV:
- up to 5% — for regular plots outside settlements;
- 0.3-5% — for agricultural lands;
- 0.1% — for forest lands.
Example:
A company in Lviv region owns a 10-hectare plot with an NMV of 30,000 UAH/ha. The local council set a rate of 1%.
Formula: 10 × 30,000 × 1% = 3,000 UAH/year.
How Legal Entities Can Find out the Tax Amount
Legal entities determine their tax obligations independently. To do this:
- Obtain NMV data through the State Land Cadastre or from the local council.
- Check current rates and benefits established by the respective community’s decision.
- Perform calculations and submit a land payment declaration by February 20 of the current year.
How Legal Entities Can Pay Land Tax
- Declaration Submission
- It must be submitted to the tax office at the location of the plot.
- You can choose the reporting period: annual or monthly.
- The amount in the declaration is divided into months (or quarters).
- Payment Deadlines
- For annual reporting period — monthly, within 30 days after the end of the reporting month.
- For monthly reporting — within 30 days after submitting the declaration.
- Payment Methods
- through internet banking (Privat24, Oshchad24, etc.);
- through bank branches or terminals;
- with State Treasury Service details.
Required Details:
budget revenue classification code — 18010700.
recipient — local office of the State Treasury Service;
recipient’s EDRPOU code — tax authority where the company is registered;
IBAN account for tax payment;
Read also: Qualified Electronic Signature (QES): What It Is and How to Obtain It
Special Considerations During Martial Law
Since 2022, benefits apply to lands in territories:
- where combat operations took place;
- temporarily occupied;
- contaminated with explosive objects;
- unusable due to fortification structures.
In such cases, local councils make decisions about tax exemption. Its amount depends on the normative monetary valuation or plot area.
Conclusion
For legal entities, land tax is a regular obligation that directly affects the company’s financial discipline. Timely payment guarantees the absence of penalties and contributes to local budget development.
Today, businesses can plan their expenses more effectively: modern services allow for distributing financial burden, and agricultural producers can purchase necessary goods with agricultural installment plans without paper bureaucracy.
By paying land tax on time, farmers make an important contribution to their communities’ development. Today, there are convenient modern tools that help agricultural producers plan their expenses effectively. The WEAGRO service allows purchasing necessary goods with deferred payment without additional documents, which is especially important during periods of significant financial burden. This helps to fulfill all obligations to the state and community on time while maintaining the farm’s financial stability.
