If an agricultural land plot is owned jointly by several relatives, the procedure for paying the minimum tax liability (MTL) depends on whether the shares of the co-owners are defined in the documents. This was reported by the State Land Cadastre of Ukraine, as reported by agronews.ua.
According to para. 14.1.114-2 para. 14.1 of Article 14 of the Tax Code of Ukraine, it is defined that the Minimum Tax Liability (MTL) is the minimum amount of tax liability for paying taxes, fees, payments, the control of which is entrusted to controlling bodies related to the production and sale of own agricultural products and/or ownership and/or use (lease, sublease, emphyteusis, permanent use) of land plots classified as agricultural lands, calculated in accordance with the Tax Code of Ukraine.
Thus, the MTL is a mandatory payment that represents the minimum amount of taxes that the owner or user of an agricultural land plot classified as agricultural land must pay.
If a land plot has multiple owners and the boundaries between relatives are not defined in nature (on-site), the rules for calculating the MTL depend solely on how the ownership documents are executed and what information is contained about the owners in the State Register of Property Rights.
For example, if a land plot belongs to relatives jointly as a whole (for example, a couple or members of a farm), and in the state register or state act the share of each of them in percentages or fractions is not specified (referring to joint ownership), then in this case, the tax authority calculates the MTL equally among each of the co-owners.
For instance, if there are three owners, the tax authority will divide the MTL amount for the entire plot among the three owners and send separate tax notices (tax decisions) to each relative.
At the same time, these relatives may enter into a written agreement among themselves and designate one payer who will pay the MTL for the entire plot. To do this, it will be necessary to formalize agreements in writing among the relatives and inform the tax service at the place of registration.
If the documents specify the shares of each co-owner (referring to joint partial ownership), but the boundaries on the land are not demarcated (fence or boundary on the plot itself is not established), then in this case, the tax authority also calculates the total MTL for the entire plot, and then divides the amount strictly in proportion to the number of co-owners and the size of their shares in joint ownership in accordance with the registered data on shares in the State Register of Property Rights.
In conclusion, if the land is jointly owned by several individuals, and the boundaries in nature are not defined, then the calculated tax MTL must be paid: either each co-owner separately in equal parts (if there are no agreements between them) or one of the co-owners whom all co-owners have authorized by agreement to do so and have informed the tax authority.
Additionally, if the land is jointly partially owned, where each co-owner has a clearly defined share and this is confirmed by registry data (even if the boundaries in nature are not demarcated), then each co-owner will pay the MTL independently in proportion to their respective share and the calculation received from the tax authority.
