When and how to pay land tax. The deadline for the payment of land tax for individuals.

Each landowner (individual or legal) is required to pay tax. Many citizens and enterprises in our country are unhappy with this fact. But, unfortunately or fortunately, state laws are not negotiable. And if taxes exist, in order not to violate the law, they should be paid on time in full. How to understand how much you need to make money in the budget for your land?

Calculation of land tax for an individual

Any citizen can check whether the land tax is correctly assessed, since all indicators necessary for the calculation are publicly available and regulated by the Tax Code of the Russian Federation. The exceptions are landowners who fall under the category of benefits, and regions where a lower tax rate is applied.

Many are wondering about who should do the calculation: the landowner himself or the tax at the location land plot. If you need to count yourself, then how to do it? Is there a certain form of calculation or any fixed coefficients? How was tax considered before and how should it be done now?

How to calculate land tax to an individual? The calculation is the tax authority on the basis of data provided by Rosreestr. Rosreestr transfers to the tax data on the category of the site and on cadastral value. It, in turn, depends on many factors: on remoteness from large cities, on the availability and quality of roads, on how well infrastructure is developed.

The cadastral value of land is recalculated every 5 years. During this time, changes may occur that may affect the value of the land.

For example, land in a village 200 kilometers from a large city was estimated at a certain size. After 3 years, a recreation center was built near the village, and the village is now included in the sanatorium-resort area. 5 years have passed - the assessment is made again. Due to the fact that the village is now part of the sanatorium area, its cost will be much higher. The cadastral value may increase due to asphalting of the road surface.

The cadastral value of any registered piece of land can be easily found online via the Internet in the USRN database. If the cost of the site inventory changes, then the updated information immediately changes on the official website.

Land Tax Calculator

For self-calculation it is necessary to know only two parameters:

• the rate at which the calculation will be made;
• cadastral value.

The tax rate is set by the federal authorities, regulated by the tax code and can be reduced by regional authorities.

For agricultural land, land for housing, land used for the defense of the state, a tax rate of 0.3% is applied. To calculate the tax for the rest of the land using the rate of 1.5%.

A land tax calculator is available on the tax website. Almost every person who has access to the Internet can use it.

The formula for calculating the tax

Land tax is calculated on the basis of certain data that is established by law.

Land tax = tax rate x cadastral value.

For example. The cadastral value of a plot for agricultural land is 65,000 rubles.

Calculation of tax: 65,000 x 0.3% = 195 rubles.

This formula is suitable for calculating the tax to the landowner, who is actually the only owner of the plot for the whole year.

Consider a few examples of how to calculate land tax. Examples are given so that you can clearly understand how the calculation should be made. It is convenient to use them as a sample when calculating your own land tax.

Calculation example №1

The land plot with a cadastre value of 205,000 rubles, which is not a plot for agriculture, a plot of housing or defense, in 2016 was the property of the seller from January to March (3 months). Then he sold it to the buyer. The tax calculation in this case is as follows:

For the seller: land tax = 205,000 x 1.5% / 12 x 3 = 768.75 rubles.

For the buyer: land tax = 205000 x 1.5% / 12 x 9 = 2306.25 rubles.

Calculation example number 2

A certain person owns the fourth part of the land plot, estimated by the inventory of 90,000 rubles. In this case, the calculation of land tax must be made according to the formula:

Land tax = cadastral value x tax rate x share of ownership.

Land tax = 90000 x 1.5 / 100/4 = 337.5 rubles.

Calculation example number 3

One person, together with his brother, bought a plot of land in September, the cost of which according to the cadastre is 150,000 rubles. The tax that must be paid to each brother for the year in which the parcel was acquired is calculated as follows:

Land tax = cadastral value x tax rate x share of ownership x tenure of ownership (number of months / 12)

Land tax for the year = 150000 x 1.5 / 100 x (1/2) x (4/12) = 375 rubles.

The following year, the tax will need to be calculated without taking into account the tenure, as it will be a whole year, provided that it is not sold.

If the owner of the land plot has a benefit, then when calculating the tax, the value of land in the cadastre is reduced by 10,000 rubles. The calculation is as follows:

Land tax  = (cadastral value - 10,000) x tax rate.

Calculation example number 4

A man owns a plot (the cadastral value is 60,000 rubles) and is a veteran of the Second World War, which means that there is a benefit for him when calculating the land tax in the amount of 10,000 rubles.

Calculation of land tax = (60000 - 10000) x 0.3 / 100 = 150 rubles.

There is a special category of citizens who do not pay land tax. These include the indigenous peoples of the Far East, the North and Siberia, as well as the peoples of the Far North, for whom the land was and remains a source of folk crafts, culture, traditions and daily life.

The government can reduce the tax rate to 0.1%, and introduce benefits for categories of citizens not listed in the Tax Code, which will significantly cut down land tax transferred to the budget.

Citizens are not obliged to independently make the calculation of the land tax: for them it makes the territorial tax authority. However, every landowner should know the principle of its calculation for verification. If he disagrees with something, he will be able to provide his own version of the calculation.

Land tax for legal entities

How to calculate land tax for a legal entity? Legal entities, as well as individuals, are obliged to pay money for the land in the budget, if it is owned by them, or they have the right to use the site indefinitely.

In addition to those land plots that:

• legal entity or individual entrepreneur rented;
• are owned by the organization and are occupied by the MKD;
• are the cultural heritage of the state, but for some reason some of them are in the possession of the organization.

The tax rate should not exceed 0.3% for agricultural land, housing, defense and 1.5% for other categories of land.

Although local authorities have the right to reduce the tax rate for certain categories of legal entities, they try to do this in extreme cases. The fact is that the difference between the federal tax rate and a regional reduced rate compensates for the local budget.

Calculation of land tax will consider examples.

Calculation example №1

The cost of land according to the cadastre of a legal entity is 1,024,000 rubles. The tax that must be paid for the ownership of the land is considered as follows:

Land tax = cadastral value x tax rate.

Land tax = 1,024,000 x 1.5 / 100 = 15,360 rubles.

Calculation example number 2

The organization owns part of the land plot on the rights of shared ownership (the cadastral value of the plot is 130,000 rubles). The total area is 3059 sq. M. meters In the possession of the organization - 1027 square meters. meters The share of ownership of the site organization is 33.57%.

Land tax is calculated as follows:

Land tax = 130,000 x 1.5 / 100 x 33.57% = 654.62 rubles.

Land tax individual entrepreneurs  paid once a year.

Legal entities must pay land tax in advance payments.

Calculation example number 3

The cadastral value of the land plot of a legal entity is 200,000 rubles. The tax to be transferred to the budget is calculated as follows.

Advance payment for the 1st quarter: land tax = 200,000 x 1.5 / 100/4 = 750 rubles must be paid before April 30.

Advance payment for the 2 nd quarter: land tax = 200,000 x 1.5 / 100/4 = 750 rubles must be paid before July 31.

Advance payment for the 3rd quarter: land tax = 200,000 x 1.5 / 100/4 = 750 rubles must be paid before November 30.

Payment of the remainder of the tax: land tax = 200,000 x 1.5 / 100/4 = 750 rubles must be paid.

If suddenly, when calculating the tax in the first quarter, erroneous calculations were carried out, which resulted in a decrease or increase in the tax transferred to the budget, the organization can adjust the advance payments by the last payment.

Tax relief for land tax

Legal entities can also receive benefits when they pay land tax.

Preferential conditions are provided to those who carry out folk crafts.

Legal entities, most of whose employees are disabled (from 80%), are also entitled to a 100% benefit.

They may not pay the land tax of the institution of the criminal and correctional system (remand prison, correctional colony).

The benefits of legal entities for the payment of tax payments are regulated by the Tax Code.

How to calculate the land tax? Any land owner periodically needs to clarify the cadastral cost of ownership in order to avoid controversial issues with the tax authority. If the value of the land cadastre is recalculated and increased, and the organization continues to pay the tax at the rate of the previous value, there may be a shortfall in the budget. The tax authority will notify the organization of the payer about the arrears and ask you to pay not only the missing part of the tax, but also penalties for late payment.

How to calculate land tax at the cadastral value? The cadastral value of the land is the variable part in calculating the tax, which today is causing a lot of controversy. There is no generally accepted principle by which specialists would evaluate the land. Some owners consider the cadastral value of their land unreasonably high, which, in turn, entails an increase in tax. Therefore, using the cadastral value as a basis for determining the value of land, a large number of applications were sent to the court with a request to consider the cadastral value to be overestimated and a request for its recalculation.

Most of the applications to the court helped the owners to reduce the cost and, consequently, the taxable base.

Land tax began to operate in 2004 after the entry into force of the law №141-ФЗ. Since then, ordinary citizens, individual entrepreneurs and organizations have deducted a certain amount of the fee to local budgets. Responsibility of citizens-individuals - payment of the fee for the received notification. Organizations are obliged to independently calculate it and submit reports - a declaration.

Payers of land tax in 2015 can expect benefits if certain conditions are met. This will be a full exemption, a deduction from the tax base or a reduced fee.

Who is considered to be the payer of land collection in the Russian Federation?

Payers of land tax in the Russian Federation are recognized (388th article Tax Code):

• legal entity;
• management company in respect of land that is part of the mutual fund;
• physical persons, in particular, individual entrepreneurs.

Pay tax and foreign legal entities and citizens, if their land is in the territory of the Russian Federation. The organizational and legal status of organizations in this case does not matter.

All "land" taxpayers NK divides into the following categories:

• site owners;
• land users - indefinite use;
• landowners - life tenure.

Only some organizations - land tax payers have the right of unlimited use:

• official;
• state institutions;
• institutions of the municipality;
• local government;
• state authorities.

Only individuals who pay land tax have the right to life-long ownership, and the legal person and the citizen may also have the right of ownership. Any right to use the land must be evidenced by the document:

• certificate of ownership, issued since the beginning of 1998;
• other title documents issued earlier.

Moreover, the absence of such a document does not eliminate the obligation to pay tax. After all, obtaining a certificate is not a mandatory procedure. The title document - the contract of sale, donation, barter - in itself serves as a sufficient basis for charging the fee for a plot of land owned.

The fee is paid at the end of the year. In addition, quarterly payers make advance payments - of the total amount. Legal entities and advance and final contributions submit a declaration to the FTS. It serves as confirmation of the size of the base (cadastral value of the allotment), the amount and availability of benefits from the payer. Those organizations that are land tax payers submit the declaration before the payment is transferred.

Who does not pay the land tax?

At the federal and local levels, various exemptions have been established to pay the fee. Thus, the law enshrines the right to release payers-legal entities in respect of the sites:

• used by institutions of the penitentiary system;
• lands of religious communities, where religious and ceremonial buildings are located;
• lands where public roads run;
• used for charitable purposes;
• societies of persons with disabilities, if such employees are at least 80%;
• institutions owned by societies of persons with disabilities;
• used for the implementation of folk crafts;
• which are used by the participants of the SEZ and located within it;
• included in the "Skolkovo";
• shipbuilding companies that operate as part of an industrial production SEZ.

• Heroes of the Russian Federation, the USSR;
• gentlemen of the Order of Glory;
• persons with disabilities of the first group, childhood, second group, if the disability is fixed until 2014;
• “Chernobyl victims” and citizens equal to them;
• disabled / veterans of hostilities, in particular, the Second World War;
• participants in nuclear tests and subsequently received radiation sickness.

Local authorities independently establish the amount of benefits and categories of persons who have the right to use them. In the field discounts are additionally defined for:

• large families;
• pensioners;
• disabled third group and others.

Non-taxable land:

• in gratuitous urgent use;
• rented.

Land tax in neighboring states

The taxpayers in the Republic of Belarus recognize landowners, in particular, under apartment buildings, on the rights of private property or ownership / use. Individuals also pay a fee in accordance with the received notice, and legal entities carry out an independent calculation of the amount of payment.

The obligation to pay arises when entering into ownership. As soon as the organization becomes a payer of land tax, the relevant information is entered into the UNP (payer registration number in the Republic of Belarus).

In Ukraine, the payment of land tax is almost identical to that in the Russian Federation. At the state level, large families (more than three minor children) and pensioners have been added to the list of preferential categories. In addition, a privilege is granted for one plot allocated for the management of a peasant farm, the construction of a garage, gardening or the construction of a country house.

In many European countries, forestry and agricultural enterprises are exempt from land tax completely. In determining the preferential categories, the payer's income level is taken into account - if it is below a certain line, you can not pay tax. Many legal entities producing significant goods - baby food, medicinal plants - as a reward are also exempted from the tax for the land on which such goods are produced.

Since 2011, tax returns are no longer needed.  (Clause 53 art. 2 Federal law  dated 07.27.2010 N 229-ФЗ). But many still have to make advance payments  on it (Clauses 1, 2, Art. 397 of the Tax Code of the Russian Federation). As the end of the half year is nearing, questions arise about how to count on it, and sometimes whether you need to pay it at all.

No land owner - no land tax

We own non-residential premises in a residential building. But we have no evidence for the land. We were given an extract where the cadastral number and. The tax requires you to pay land tax and submit a declaration. Is the inspection right?

Not. You are not recognized as a land tax payer, since you are not the owner of a land plot (Clause 1, Art. 388 of the Tax Code of the Russian Federation; clause 2 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of July 23, 2009 No. 54; Letters of the Russian Ministry of Finance of April 21, 2011 No. 03-05-05 -02/22, of 03/03/2011 N 03-05-05-02 / 12, of 02/25/2010 N 03-05-04-02 / 23, of 06/28/2010 N 03-05-05-02 / 45) . Therefore, until you are issued a certificate of ownership, you do not have to pay tax.

Do not know the cadastral value? Pay tax at the standard price of land

We did not pay land tax until we received a cadastral passport with information about the cost of the site. The auditors told us that the inspection additionally charged us the tax for the entire period during which we did not pay it, and would fine us. This is true?

Yes. After all, the lack of information about the cadastral value of the land did not exempt you from the obligation to pay tax.
  You could request information about the cadastral value of land free of charge at the territorial office of the Federal Real Estate Cadastre Agency or find out on the Rosnedvizhimost website (Clause 14 of Article 396 of the Tax Code of the Russian Federation; paragraphs 1 and 2 of the Resolution of the Government of the Russian Federation of February 07, 2008 No. 52) .
  If you did not find such information or Rosnedvizhimost refused to give it to you (Clause 9, Art. 14 of the Federal Law of 24.07.2007 N 221-ФЗ “On the State Real Estate Cadastre”), then the tax had to be calculated and paid on the basis of the normative price of land (Clause 13 article 3 of the Federal Law of 25.10.2001 N 137-FZ "On the introduction of the Land Code Russian Federation"(as amended on March 20, 2011); Letter of the Ministry of Finance of Russia dated August 12, 2009 No. 03-05-05-02 / 48; paragraph 7 of the Resolution of the Plenum of the Supreme Arbitration Court of the Russian Federation of July 23, 2009 No. 54). You should have known about it from the normative acts of regional authorities or request from the territorial Rosreestr territorial body (Article 25 of the Law of the Russian Federation of 11.10.1991 N 1738-1 “On Land Payments”; pp. 1, 4 of the Decree of the Government of the Russian Federation of 15.03.1997 N 319).

The specified land sold is submitted to the place of registration of the organization

Our organization owned a land plot in another region and submitted land tax declarations at the location of the land. We sold the lot, and after that we found an error in the declaration. In which inspection we need to submit a revised declaration: in which we are registered or at the location of the land plot?

Within 5 days after the sale of the land plot, the Inspection of the Federal Tax Service will deregister your organization at the location of the land (Clause 2, Art. 85 of the Tax Code). Therefore, you submit the clarification to the tax authority at the place of registration of the organization (Clause 5, Art. 81 of the RF Tax Code). The Ministry of Finance does not object to this either.

From reputable sources
  Alexey Sorokin, Head of the Property and Other Tax Division, Tax and Customs Tariff Policy Department, Ministry of Finance of the Russian Federation
  "In the case of the sale of land and deregistration in the tax authority at the location of this site, the RSB card for the corresponding CSC is closed, and the balance of calculations is transferred to the tax authority at the place of registration of the organization. At the location of the organization, the RSB card is opened with the corresponding CSC and OKATO code of the municipality in which the land is located and for which land tax was previously paid.
  Thus, the revised declaration is submitted to the tax authority at the location of the organization. At the same time, tax liabilities are clarified according to OKATO, which was previously paid tax at the location of the land plot ".

Buying land for resale does not exempt from paying tax

We purchased land for resale. The property right is registered, the plot has been credited to account 41. Are we a land tax payer? If so, how to account for this tax?

Yes you are. The basis is a certificate of title to land (Clause 1, Article 388 of the Tax Code of the Russian Federation; Letter of the Ministry of Finance of the Russian Federation of 09.07.2008 N 03-05-04-02 / 40).
  In accounting, land tax may be included in expenses for ordinary activities (debit of account 44, credit of account 68) (Clause 5 PBU 10/99 “Expenses of an organization”, approved by Order of the Ministry of Finance of Russia of 06.05.1999 N 33n) tax - to other expenses (subparagraph 1 of paragraph 7 of article 272, paragraph 1 of paragraph 1 of article 264 of the Tax Code of the Russian Federation; Letter of the Ministry of Finance of Russia dated 04/18/2011 N 03-03-06 / 2/64).

You only have to pay tax for full months.

The certificate on the right to the earth is dated 12/20/2010. Do we need to submit a declaration and pay land tax for 2010?

You become a payer of land tax from the moment of registration of the title to land (Clause 1, Art. 388 of the Tax Code), therefore you must submit a declaration for 2010 (Clause 1, Article 398 of the Tax Code).
However, only full months of actual ownership of a piece of land are involved in calculating land tax (Clause 7, Article 396 of the Tax Code of the Russian Federation). If the ownership right has arisen before the 15th of the month, the month is considered complete and is taken into account in the calculation (Clause 7, Art. 396 of the Tax Code), if after the 15th month, the month is not taken into account. Therefore, in the declaration the amount of tax for 2010 will be equal to zero. You will start paying tax only from 2011.

Due to the error Rosreestra tax not recalculated

In January 2010, our organization acquired a land plot. Tax for 2010 paid in full. In April 2011, Rosnedvizhimost sent us a paper in which she wrote that due to a technical error, the cadastral value of the land belonging to us in 2010 was incorrectly indicated. It should be higher. Is it necessary in this connection to hand over specifications and pay extra tax?

No no need. It is necessary to submit clarifications and pay additional tax on the basis of the increased cadastral value only if it was corrected on the basis of a court decision (Letter of the Ministry of Finance of Russia of 03/10/2011 N 03-05-04-02 / 21). If there is a solution and you have to pay additional tax, then you cannot be charged penalties, since the tax in this case is recalculated not through your fault (Letter of the Ministry of Finance of Russia dated December 17, 2008 No. 03-05-04-02 / 75).

If the purpose of the land has changed, you do not need to recalculate the tax.

In March 2011, the purpose of our land plot changed. As a result, the cadastral value has increased and the tax rate has changed. From what point do you need to recalculate the tax?

For 2011, you do not need to recalculate the tax, because you pay the entire 2011 tax based on the cadastral value determined on 01/01/2011 (Clause 1, Art. 391 of the Tax Code of the Russian Federation; Letter of the Russian Ministry of Finance dated August 18, 2010 N 03-05-05 02/66). It is only necessary to pay tax based on new data since 2012.

Divided the plot - pay tax in a new way

Our organization has divided its land plot into several parts. Some of the parts have changed their purpose, and the land tax on them should be calculated at a reduced rate. Ownership of the formed land plots was registered on 11.03.2011. From what time can I pay tax at a reduced rate?

You calculate the land tax as follows (Clause 1, Article 391, Clause 7, Article 396 of the RF Tax Code; Clause 1, 2, Article 11.4 of the Land Code of the Russian Federation; Clause 6, Article 22.2 of the Federal Law of July 21, 1997 N 122 -FZ "On State Registration of Rights to real estate  and deals with it "):
1) for the former plot - up to a month of termination of ownership of it, that is, until March;
  2) for new sites - from the month of registration of ownership of them, that is, from March to December. And already at reduced rates.
  Please note that in the declaration you fill out a separate sheet of Sec. 2 for each plot, including the former (Clause 1.2 of the Procedure for filling out a tax return for land tax, approved by Order of the Ministry of Finance of Russia dated September 16, 2008 No. 95н).

Became an entrepreneur - submit a declaration on the land used

As an individual entrepreneur, I was registered on 03/15/2011 and immediately began to lease my land, which I own since 2009. Will you need to calculate the land tax for 2011 for the whole year or only for the time of renting land?

After you signed up as an IP and began to use in your business activities  land owned by you, you are obliged to calculate and pay land tax, as well as submit a declaration.
  In section 2 declarations have line 210, in which you must specify the number of full months of ownership of the land plot during the year (Subparagraph 22, paragraph 5.2 of the Order, approved by Order of the Ministry of Finance of Russia of September 16, 2008 No. 95n). Since you owned the site during the whole year, then you need to specify the full number of months, that is 12. Accordingly, you will also calculate the tax for the whole year, regardless of the actual time of use of the land in business activities.

Unused land entrepreneur does not declare

I own a plot of land that I bought before I registered as an entrepreneur. Now I’m in PI and I’m in home appliance retail. I think I do not need to file a land tax on these lands. Am I right?

You're right. If you do not use the land, then you do not need to submit a declaration. Pay the tax as an individual on the basis of notifications sent by the inspectorate (Clause 4 of Art. 397 of the Tax Code of the Russian Federation). And when you begin to use the land in your business - do not forget to submit a declaration.

In September, will begin sending out paper notifications for the payment of personal taxes. If a citizen does not live at the place of residence, such notice may be lost. To avoid this, it is better to inform the inspection of your current address for correspondence in advance.

The procedure and terms of payment of land tax

Update: February 2, 2017

The rules (procedure, term) of land tax payment are determined by the local authorities (as well as the authorities of the regions - Moscow, Sevastopol and St. Petersburg) taking into account the provisions of the Russian Tax Code (hereinafter - the RF Tax Code). These rules are different for individuals and legal entities. If they are violated by the taxpayer, then he can be brought to responsibility (to impose a penalty for non-payment of tax, to charge penalties for late payments).

Where to pay land tax for legal entities and citizens?

Land tax is local, therefore local authorities determine:

• tax rates;
• terms of payment;
• mandatory advance tax payments;
• tax breaks.

Revenues from it go to replenish the treasury of municipalities, and it must be paid to the budget of the municipality in which the land plot is located.

What to do if the site is located on the land of several municipalities? In this case, the payment must be made to the local budgets of all the municipalities in whose territory it is located. Such clarifications were given by the Ministry of Finance of Russia, in particular, in Letter No. 03-06-02-02 / 59 of May 5, 2006 (clause 6). The tax base for each municipality is determined in this case as the share of the cadastral value of the land plot in proportion to the part of the plot attributable to the respective municipality. The tax must be paid in the manner and within the deadlines established in the territory of each municipality. For information on the size of the share attributable to a particular municipality, the Ministry of Finance recommended to apply to the territorial bodies of Rosnedvizhimost (this service was abolished, its functions were transferred to Rosreestru) and local self-government.

Land tax: payment deadlines for legal entities

Organizations must independently calculate the tax after calendar year (tax period). Then they have to pay tax in the terms established by local authorities. Moreover, such a period cannot be earlier than February 1 of the year following the expired. This follows from paragraph 1 of Article 397 and paragraph 3 of Article 398. For example, according to the results of 2016, the payment deadline cannot be set earlier than 01.02.2017.

Given this rule, municipalities determine the timing of land tax payment in their territories. For example, in Moscow, organizations must pay land tax for 2016 no later than 01.02.2017. In St. Petersburg, the tax for 2016 must be paid legal entity  not later than February 10, 2017.

In addition, local authorities (the authorities of St. Petersburg, Sevastopol, Moscow) have the right to determine the frequency of the advance payment of the tax. At the same time, local authorities may provide in their regulatory enactments that advance payments are not made.

In Moscow and St. Petersburg, advance tax payments must be made before April 30, July 31, and October 31, inclusive. That is, the payment of the advance is given 1 calendar month after the corresponding reporting period.

You can familiarize yourself with the terms of tax payment on the FTS website. In this service information is available on almost any region and municipality. To get the necessary information, you need to fill out an intuitive search form, after which the service will display the data for the relevant territory.

Deadline for the payment of land tax for individuals

Individuals, including entrepreneurs, should not calculate the tax on their own, and therefore they should not surrender and tax returns. The land tax is paid on the basis of a notification received from tax authoritieswhich must be sent no later than 30 days (working) before the due date. Pay land tax for individuals  it is necessary at the same time until December 1 (inclusive) of the year following the expired. December 1 is the deadline for both land tax and other property taxes for citizens, valid throughout the country.

As for advance payments, unlike organizations, individuals do not pay an advance payment, and local authorities do not have the right to establish it.