Penalties and Interest for Land Tax Delays: How Sanctions are Calculated

Penalties and Interest for Land Tax Delays

Late payment of land tax in Ukraine leads to financial responsibility in the form of penalties and interest, which depend on the duration of the delay. Taxpayers are required to adhere to the deadlines and amounts of tax payments established by legislation.

Individuals must pay the land tax within 60 days from the date of receipt of the tax notification-decision. In case of delayed payment, the legislation provides for the imposition of penalties. Specifically, the penalty for delay is:

• 5% of the paid amount of tax debt for delays of up to 30 days;
• 10% for delays of more than 30 days.

In addition to penalties, taxpayers are charged interest, which is calculated for each day of delay on the debt amount, including the day of payment. The interest is calculated using 120% of the annual discount rate of the National Bank of Ukraine. The interest begins to accrue from the first working day after the deadline for tax payment.

The Importance of Adhering to Tax Payment Deadlines

Therefore, late payment of land tax can lead to significant financial losses for taxpayers, so it is important to adhere to the established payment deadlines.

Knowledge of the rules for imposing penalties and interest on land tax is important for taxpayers, as it helps avoid unforeseen financial costs. - Source Unknown

Given the economic conditions, taxpayers must be particularly attentive to payment deadlines in order not to worsen their own financial situation. Timely payment of taxes also contributes to the stability of local budgets and the development of infrastructure in the regions.