Land for Rent, Shop, Store for 2yrs Advance

YOUR LOVE VIDANIA READ ON-LINE Main Company news Payment of rent in advance: procedure and taxation Who is this article for: for agricultural enterprises that lease land plots of private property and wish to pay rent in advance. From this article, you will learn: about the grounds on which rent payments are made in advance, the way to avoid subsequent indexation, the rules of taxation and the option of payment of taxes by installments. Conditions on the amount, frequency and timing of payment of rent for land are established in the lease agreement (Article 21 of the Law of 06.10.98, No. 161-XIV "On land lease"). That is, the basis for paying rent in advance is a land lease agreement. There is also another basis - the norm of Art. 531 of the Civil Code (hereinafter - the Civil Code). According to this article, the debtor has the right to fulfill his debt ahead of schedule, unless otherwise provided by the contract, acts of civil law or follows from the essence of the obligation or customs of business turnover. Therefore, according to civil law, it is certainly Land for Rent, Shop, Store for 2yrs Advance  possible to fulfill the obligation to pay rent ahead of schedule, but only if it is not prohibited by the contract. Therefore, first you need to study the terms of the contract and make sure that there is no such prohibition. Then, even if the terms provide for an annual payment, the tenant has the right to issue funds in advance for a certain period or for the entire period of use (for an example of the wording of terms, see the publication “If the rent is issued in advance”). We will explain what to do if the lease agreement for the land plot provides for the following conditions: The lease agreement prohibits paying rent in advance, but at the verbal request of the lessor, the lessee paid him the funds in advance for the entire period of use. What are the tax implications for the tenant? First of all, from a legal point of view, the funds transferred do not relate to obligations under the contract and do not terminate the tenant's obligation to pay the rent. Indeed, according to the terms of the contract, he must pay the rent in a certain period and only in this way. There is a risk of loss of land. The tenant is sure that he paid for the rent, and in the next months / years does not transfer any funds, and the unscrupulous landlord gets a reason to terminate the contract early. The basis for the termination of the lease right is a systematic (two or more) failure to pay rent (part 1 of article 141 of the Land Code). Therefore, the landlord has legal grounds to go to court for early termination of the lease. As for taxation, income from the lease (sublease) of an agricultural land plot, land share (share), property share are subject to personal income tax and military tax (hereinafter referred to as VS) by the tax agent at the time of their accrual (payment) (for more details, read "Taxation payments under the lease agreement and the procedure for paying taxes "). Consequently, in the case of payment of the rent in advance, the lessee is obliged to withhold and transfer taxes to the budget simultaneously with its transfer to the lessor in the case of non-cash payments or within 3 banking days from the day following the day of such payment, if it is made from the cash desk of the enterprise (clause 168.1 Of the Tax Code, hereinafter - the Tax Code). The same taxation procedure applies to lease payments made in the following months / years in accordance with the terms of the agreement. At the same time, the tenant will not be relieved of the obligation to pay taxes on accrued but unpaid rent. https://jiji.com.gh/tema-metropolitan/land-and-plots-for-rent/land-for-rent-shop-store-for-2yrs-advance-9WCD9wLvptwnSLo9kVGtGvTJ.html