Inmar Legal Ltd: The Federal Tax Service Explaining the Changes in Land Taxation

The Tax Service published an explanatory statement at their official website regarding the changes in land taxation effective since 2021.

Specifically, for corporative taxpayers unified deadlines for paying the land tax and its advance amounts were introduced (Federal Law dd September 29, 2019, No. 325-ФЗ).

According to the new rules, the tax must be paid no later than March 1 of the year after the tax period which has ended, and the advance payments (unless revoked by representative bodies of municipalities) no later than the last date of the month after the tax period which has ended.

Besides that, since 2021, the obligation to declare the land taxes was revoked starting from the tax period of year 2020 (Federal Law dd April 15, 2019, No. 63-ФЗ). Tax authorities would send messages to the organizations stating the assessed land taxes (Tax Code Cl. 397 Par. 5). That said, legal entities would deliver commentaries and/or documents to the evidence of the assessment being accurate, the tax paid fully and in time, the reduced rates, benefits applied justified or grounds for tax exemption, as prescribed by law, and tax authorities would consider them in the manner and within terms prescribed by law (RF TC Cl. 363 Par. 4).

Another development is the new procedure for tax benefits. A new condition was added: if an individual taxpayer did not submit to the tax authority his application for tax reduction or did not declare a waiver to have it, the benefit would be granted based on data that the tax authorities would receive in accordance with the federal laws. Such non-application procedure would be used starting from the tax period when the taxpayer first had right to use such benefit. Before that, there were no such regulation that would specify the period starting from which this tax benefit procedure could be used (RF TC Cl. 396 Par. 10).