According to the Tax Code of Ukraine (hereinafter − TCU),thesubject to taxation for agricultural enterprises − unified tax payers of group IV is the area of agricultural land(arable land, grasslands and pastures and perennial plants) and / or the water resource lands (inland water, lakes, ponds, reservoirs), owned by the agricultural commodity producer or granted to it for use, including on a lease basis. Are there any other peculiarities of taxation of agricultural enterprises − payers of the unified tax of the IV group?
The basis of taxation for payers of the unified tax of group IV for agricultural producers is the normative monetary valuation of one hectare of agricultural land (arable land, hayfields, pastures and perennial plantations), taking into account the indexation coefficient determined as of January 1 of the base tax (reporting) year in accordance with the procedure, established by TCU (para. 2921.2 of TCU).
In order to be on the unified tax of the IV group it is necessary:
- to have available land plots of the appropriate destination;
- the share of agricultural commodity production for the previous tax (reporting) year should not be less than 75%.
Since January 1 of the current year, the unified tax rates for the unified tax payers of the IV group have been increased by more than 15% and amount to (as a percentage of the tax base):
- for arable land, hayfields and pastures (except for arable land, hayfields and pastures located in mountainous areas and in the Polissia territories, as well as agricultural lands under closed soil conditions) − 0.95;
- for arable land, hayfields and pastures located in mountain areas and in the Polissia territories − 0.57;
- for perennial plantations (except perennial plantations located in mountainous areas and in the Polissia territories) − 0.57;
- for perennial plantations located in mountainous areas and in the Polissia territories − 0.19 (previously 0.16);
- for farmland under closed soil conditions − 6.33.
It should be mentioned that in 2015 and 2016 other tax rates were in effect, namely:
- for arable land, hayfields and pastures (except for arable land, hayfields and pastures located in mountainous areas and in the Polissia territories, as well as arable land, hayfields and pastures owned by agricultural producers that specialize in the production (cultivation) and processing of crop production under closed soil conditions, or granted to them for use, including on a lease basis) − 0.81;
- for arable land, hayfields and pastures located in mountain areas and in the Polissia territories − 0.49;
- for perennial plantations (except perennial plantations located in mountainous areas and in the Polissia territories) − 0.49;
- for perennial plantations located in mountainous areas and in the Polissia territories − 0.16;
- for water fund lands − 2.43;
- for arable land, hayfields and pastures owned by agricultural producers that specialize in the production (cultivation) and processing of plant growing products under closed soil conditions, or granted them for use, including on a lease basis − 5.4.
As it was noted earlier, the base for the unified tax of the IV group is not just land, but its normative monetary valuation, which is subject to both changes and indexation. So, according to the letter of the Ministry of Finance of Ukraine of 19.01.2017 No. 31-11150-09-10/1342 taking into account the peculiarities specified in para.5 of sub-sec.8 of sec. XX “Transitional provisions” of TCU, the following indexation coefficients are to be applied:
- for 2015 − 100%;
- for 2016 − 112.4% (the value of the consumer price index).
The payers of the unified tax of the IV group do not pay the following taxes:
- company income tax;
- personal income tax in terms of income (object of taxation) received as a result of economic activity of the payer of the unified tax of I-III groups (an individual) and taxed according to TCU;
- value added tax (hereinafter − VAT) with the transaction for the supply of goods, works and services, the place of delivery of which is located in the customs territory of Ukraine, except for VAT paid by individuals and legal entities that have chosen the unified tax rate specified in sub-para.1 of para. 293.3 of Art. 293 of TCU, as well as paid by the payers of the unified tax of the IV group;
- property tax (with respect to land tax), except for land tax for land plots that are not used by payers of the unified tax of I-III groups for carrying out economic activities and by the unified tax payers of group IV for conducting agricultural commodity production;
- rent payment for special use of water by the unified tax payers of group IV.
