How can you optimize the land fee?

The use of land in Ukraine is paid. Forms of payment for land use are land tax and rent.

Most often, the fee for the use of land is very significant, which does not make it possible to conduct business as profitably as possible. On the one hand, payments for land are a good incentive for the most profitable use of land, but on the other hand, excessive and economically unjustified payment for land makes it impossible to conduct business in a difficult economic situation.

If land use costs cannot be completely avoided, they can be minimized.

The rent for the use of land plots is determined in accordance with Article 288 of the Tax Code of Ukraine. At the same time, the annual amount of rent is set in the range from 3 to 12 percent of the normative monetary value.

The change in the annual amount of the rent depends on the approval of the new normative monetary assessment for the settlement and on the value of the indexation coefficient of the normative monetary assessment of land, to which the normative monetary assessment is indexed.

In connection with the constant increase in the size of the normative monetary assessment of the land plot, which constantly increases several times, an unreasonably high rent arises.

However, there are legitimate ways to reduce unreasonable rental costs. If you approach the solution of this issue correctly, payments can be significantly reduced.

The procedure for calculating and paying land tax is established by the Tax Code of Ukraine.

In accordance with the legislation, for taxation purposes, the normative monetary valuation of the land plot is established, taking into account the indexation coefficient.

Thus, it turns out that if the normative monetary value of the plot is overestimated, then high deductions from the land tax arise.

Therefore, a reduction in tax payments can be made in two ways: the first is a reduction in the normative monetary valuation of the land plot, the second is a change in the legal status of the rights to real estate located on the plot.

A professional conclusion regarding the probability of optimizing tax or lease payments can only be made on the basis of specific information about the land plot and the objects located on it.