Do not pay tax for an artesian well, be prepared for the consequences

In one of the articles on artesian wells in the comments, disputes flared up about the need for permits for drilling. Today I decided to delve a little deeper into this topic, talk about the "water amnesty", licenses and taxes.

I will start with a reminder that artesian waters are the country's strategic water reserve, therefore, like other minerals, they are the property of the state. Previously, only legal entities using groundwater for commercial purposes had to obtain a license and pay taxes.

But in 2015, the authorized bodies decided that it was necessary to introduce water accounting, start issuing licenses for the construction of wells and levy taxes not only from legal entities. persons. Since at that time a large number of unformed wells were drilled on the territory of the country, "Period of water amnesty" - from 2016 to the end of 2019. This is the time that was given for the free registration of permits for wells.

If you have not had time or are just planning to drill a well, then in 2020 you will have to pay a state duty for obtaining a license for water intake.

Since 2019, wells that are collectively owned by garden partnerships have become subject to compulsory licensing and taxation.

In January 2020, a law on compulsory licensing and taxation of artesian wells came into force. It also applies to individuals. The license is issued for 25 years.

Who is obliged to pay tax for a well and when?

• Legal entities using well water for profit.
• Horticultural and horticultural partnerships that collectively use the well.
• Individuals who consume more than 100 cubic meters of water per day.
• Deep-water artesian wells with a depth of more than 40 meters are subject to taxation and licensing.

Which wells are tax free?

Individuals can continue to use groundwater free of charge if certain conditions are met:

• For personal use only (not commercial or industrial).
• Water consumption per day is less than 100 cubic meters.
• The well depth is less than 40 meters.
• Water is extracted from the upper layers, and the well is not artesian.

Violation of the rules for the use of groundwater is fraught with fines and an order to abandon the well. So if you do not comply with the law, be prepared for unpleasant consequences and the possibility of being left without water.