It is no secret that the collection of rent for the special use of forest resources in 2021 (hereinafter – the rent) has some specifics. More detailed information below.
Legislative background
First of all, it should be reminded that the payers of rent are forest users who carry out special use of forest resources on the basis of special permits (logging or forest tickets) or in accordance with the terms of the contract for long-term temporary use of forests.
The conditions for special use of forest resources are determined by the Procedure for special use of forest resources and the Procedure for issuing special permits for the use of forest resources, approved by Resolution of the Cabinet of Ministers of Ukraine “On Regulation of Special Use of Forest Resources” No. 761 of May 23, 2007 (hereinafter – Procedure No. 761), according to which the special use of forest resources is carried out on the basis of logging or forest tickets. The forest ticket is issued annually on the basis of the limits on the use of forest resources during the harvesting of secondary forest materials in the form given in Annex 2 to the Procedure No. 761.
Reporting and taxation
Forest users quarterly file a tax return on rent and pay equal parts of the amount of rent specified in the received logging tickets (special permits) within 10 calendar days after the deadline for filing a tax return issued in the calendar year, except for amounts paid in accordance with paragraphs “a” and “b” of items 256.11.6 and 256.11, Art. 256 of the Tax Code of Ukraine. Namely:
a) forest users, who pay the rent to the cash desks of the subjects of forest relations, who issue them, before receiving logging and forest tickets:
- individuals, as well as sole proprietors who have been issued logging and forest tickets;
- forest users (except for natural persons, sole proprietors who have been issued forest tickets), whose amount of rent in logging or forest tickets does not exceed 25% of one minimum wage established by law on January 1 of the year in which the rent is paid;
b) forest users from another region, who pay rent in full before issuing them a special permit at the location of the forest area where timber is harvested.
Norms of the Budget Code of Ukraine
In accordance with Art. 29 and 64 of the Budget Code of Ukraine income of the general fund of the state budget and budgets of rural, town, city territorial communities includes the rent, which is transferred by rent payers to accounts opened in the bodies providing treasury servicing of budget funds, providing allocation of these funds in proportions defined by the Budget Code of Ukraine, as amended by Law of Ukraine “On Amendments to the Budget Code of Ukraine” No. 907-IX of September 17, 2020, namely:
- 37% of rent – to the general fund of the state budget;
- 37% of rent – to the general fund of local budgets;
- 26% of the rent – to the special fund of the state budget.
Rent payers calculate the amount of rent by the cumulative total from the beginning of the year and prepare tax returns according to the forms approved by the order of the Ministry of Finance of Ukraine No. 719 of August 17, 2015.
