Today we offer the reader to talk about a phenomenon that is widespread in Russia and is called a personal subsidiary plots. What will it be about? What exactly does this concept mean? Is there a talk in this case of a farm (peasant) economy, implying a relatively large-scale land tenure with a corresponding turnover, or is it just a modest garden garden that can only feed its own owner with households? Let's get it right.
If you have a garden or a small plot of land near the house where you grow some vegetables and keep livestock in the amount of several units, you probably do not plan to expand the economy. But in the case of the formation of surpluses grown and produced, which you cannot consume on your own, you plan to sell them. Will such revenue be classified as income from entrepreneurial activity? What does the rule of law say about this?
Federal Law on personal subsidiary plots
Such activities are regulated by law. Namely - 112 of the Federal Law of the Russian Federation under the title "On personal subsidiary farming", released in 2003 (July 7). The first paragraph of Article No. 2 of this normative act provides a definition of the concept of personal subsidiary plots. Private farming is a form of activity related to the production and processing of agricultural products. Moreover, this activity is considered non-entrepreneurial.
Private household farming is carried out by a citizen alone or with the involvement of family members in order to satisfy his own personal needs on a plot of land acquired or provided specifically for this purpose.
Those agricultural products that are grown and processed, in this case, belong to the property of the leading private household planner, and the process of its implementation is not an entrepreneurial activity. LPH should not be registered separately. The right to engage in such activities (production and processing of agricultural products with their subsequent sale) arises immediately after registration of the right of ownership or lease on the specified land. According to the aforementioned Federal Law No. 112, a citizen leading a private household is a commodity producer in the field of agriculture (similar to a farmer or agricultural enterprise).
On which land plots is it possible to organize private household plots?
There are only two categories. The first of them - land for personal subsidiary plots within the boundaries of the settlement, that is, personal plots. The second - land beyond the boundaries of the settlement (field). On household plots, agricultural products are produced, as well as residential buildings, buildings and structures for domestic, industrial, etc. purposes are being erected. A land plot with the status of a field can only be used for agricultural production without the right to build any buildings on it.
Are there any restrictions on the size of the plot for private household plots?
The maximum size of such a plot in the case when it is granted to the citizen in the property from among the municipal or state lands is regulated by legal regulatory acts of the local administration.The maximum total area of all land plots that each citizen has the right to simultaneously own or have another right is established in accordance with the law of the subject of the Russian Federation.
If the total area has exceeded the maximum allowable size, then within one year from the date of the right to "extra" land, this territory must be alienated by the citizen. Another option is that the indicated person should register as an individual entrepreneur at the same time or perform state registration of a farm (peasant) farm.
Is it possible for a city dweller to obtain land in a village with the aim of organizing private household plots?
If you live in a city, you have the right to receive a plot for private partnership. But only in the case when they are registered on a permanent basis in this city settlement. A land owned by the state or municipal will be provided to you only if there is free land.
LPH accounting
All private household plots are accounted for by the administrations of settlements and city districts in their household books. These books are kept according to information that is provided on a voluntary basis by a leading private household member:
- Who leads it - F. I. O., the date of birth of the citizen to whom the site was provided or by whom it was acquired for the purpose of maintaining private household plots.
- Data (full name, date of birth) of those who, together with him, participate in the management of private household plots (living or just family members).
- The area occupied by private household plots. On which lands - crops and planting of crops, on which - berry or fruit plantings.
- The number of livestock, farm animals, birds and bees.
- What property is available to private household plots. We are talking about equipment, agricultural machinery, vehicles that, on the basis of personal property or otherwise, belong to a leading private household planner.
What taxes are to be paid to the leading timber industry complex
Article number 217 of the Tax Code states that the taxpayer’s income received from the sale of livestock, poultry grown in private household plots located on the territory of the Russian Federation (in live form, in the form of their products or slaughter in raw or processed form), in addition to products plant and animal husbandry, beekeeping and floriculture (also in natural or processed form) is not subject to personal income tax. Private sector management is a form (as already mentioned) of non-entrepreneurial activity. That is, citizens who organized such an economy will not have to pay:
- VAT (its payers are individual entrepreneurs and organizations);
- income tax;
- as well as property tax (this does not apply to real estate, machinery and vehicles).
In addition, he is not “threatened” by deductions from the salaries of employees, who are most often members of the family.
And what will the owners of private household plots have to pay? They must be paid land tax. Also subject to agricultural machinery and real estate.
Let's talk about the sale of LPH products
Prior to the sale of products grown in your own private household plots, you should take a note from the local administration (at the head of the rural settlement) that the products grown and sold by you were produced there - in your private household plots. This guarantees you a tax exemption.
For example, you take your own car to sell several slaughtered sheep or chickens to the city market. When stopping by a traffic police officer, there may be questions - where are you going to and where is so much meat from. By presenting the indicated certificate (that is, confirming that products grown in private household plots are being transported), you will get rid of unnecessary misunderstandings.
Another situation - you plan to turn over this meat, for example, to a sausage shop. At the same time, a trade-purchasing act will be drawn up indicating your passport data and TIN (do not forget to stock up on copies of these documents to provide products to the buyer).An obligatory application of the trade-purchasing act is the above-mentioned certificate on the sale of products grown in your private household.
About possible misunderstandings
The law determines that the buyer does not have the right to withhold personal income tax from you and should not submit a relevant certificate to you to the tax office. But sometimes, due to poor knowledge of the legal subtleties, the acquirer of the product may still submit information to you to the tax authorities about the income received.
In this case, at the beginning of the next calendar year, you will receive a notice of income and unpaid tax received as a result of the past year. Then you have to pay a visit to the tax office with an oral or written explanation of the nature of the transaction. No declarations are required and the tax itself is not to be paid, as already mentioned.
What else should the LPH owner know
If you sell products grown on the market, the use of cash registers is not required - it must be available only to the organization or to the individual entrepreneur that you are not currently at.
Hence the conclusion - if the entire set of land plots in your property or lease does not exceed the amount established in accordance with the law of the subject of the Russian Federation, then this form of self-employment - in the form of private household plots - may be the best option, since one of its undoubted advantages is the lack of registration and taxation .
At the same time, state bodies and local administration are prohibited from interfering in the activities of the leading private household planner, except as otherwise provided by law. It is their authority to monitor compliance by such citizens with legal standards.
What property is used for private household plots?
In the sixth article of the Federal Law "On personal subsidiary plots" it is said that it can use a plot of land acquired or provided for this purpose, a residential building, as well as other buildings, domestic or industrial buildings, including greenhouses. Such property also includes the entire livestock of farm animals, birds and bees, the totality of agricultural machinery and implements, equipment, vehicles, etc.
Does the state support owners of private household plots?
According to article 7 of the same law 112 FZ, measures of support for citizens employed in private household plots are determined by local authorities. Along with this legislation of the Russian Federation, the following areas of state support for such citizens are provided:
- In the form of the formation of the necessary service infrastructure (access roads, energy and water supply, communication facilities, etc.), assistance in organizing consumer agricultural cooperatives of a commercial (sales), processing, service and other nature.
- In the form of stimulating the development of the LPH network by creating conditions of a social, organizational, legal and environmental nature. In particular, the owners of private household plots, as well as the organizations serving them (for example, agricultural cooperatives), on a return basis, are provided with financial and logistical resources, as well as technologies and necessary scientific and technical developments.
- In the form of the implementation of necessary measures leading to an improvement in the quality of rural breeding animals, the organization of their artificial insemination.
- Also - the annual free veterinary examination of livestock with the organization of veterinary services, the fight against infectious diseases among animals.
What else affects the development of smallholders
The legislation of the Russian Federation provides for the distribution on LPH of those state support measures that are provided at the expense of the federal budget to agricultural producers. The subjects of the Russian Federation adopt programs for the socio-economic development of not only rural settlements, but also private household plots.Within their own authority, they determine in what form, size and order the private household plots will be supported on their own territory together with the agricultural cooperatives and other organizations serving them.
The right to enter into legal relations of compulsory pension insurance to leading private household members is granted on a voluntary basis.
When does LPH stop? This happens in case of termination of rights to the land plot where it is maintained.
What you need to remember for those who want to organize LPH
As already indicated, the law is not allowed to be built on agricultural land. That is, if you are planning to build a residential building or other structures, your private household plot must be within the boundaries of the settlement. It should be borne in mind that renting per hectare of land within its borders is an order of magnitude more than outside the settlement.
In the case of obtaining the status of a farmer (that is, the formation of a farm), a citizen is required to register as an entrepreneur with all the ensuing difficulties and consequences - maintaining a balance sheet, reporting, which greatly complicates the process of managing on a land plot and will frighten away many from this occupation.
Another option for those wishing to develop on the land of private farms is to seek the transfer of a field plot into the category of settlement land. It must be remembered that land that is used for other purposes is not legally permitted.
