Law of Ukraine

"On Amendments to the Tax Code of Ukraine Relating to Certain Issues of Charitable Aid Taxation"

Date of entry into force:
September 26, 2014

The Tax Code of Ukraine regulates relations arising in the sphere of levying of taxes and fees, in particular, determines an exhaustive list of taxes and fees levied in Ukraine, and the procedure for their administration, payers of taxes and fees, their rights and obligations, the competence of controlling authorities, the authority and obligations of their officials during tax control, and the liability for violating tax legislation (Article 1 of the Tax Code of Ukraine).

Article 165 of the Tax Code of Ukraine establishes incomes that are not included in the total monthly (annual) taxable income for determining the natural person income taxable item.

The Law supplements Article 165, paragraph 165.1 of the Tax Code of Ukraine with a new sub-paragraph 165.1.54, according to which the total monthly (annual) taxable income of a tax payer shall not include the amount (cost) of charitable aid:
  • paid (provided) by benefactors, including by natural person benefactors, included in the Register of the Anti-Terrorist Operation Volunteers, according to the procedure determined by the Law of Ukraine "On Charity and Charity Organizations" for the benefit of: 1) combat participants – military servicemen (reservists, enlisted) and employees of the Armed Forces of Ukraine, the National Guard of Ukraine, the Security Service of Ukraine, the Foreign Intelligence Service of Ukraine, the State Border Service of Ukraine, members of private and officer corps, military servicemen and employees of the Ministry of Internal Affairs of Ukraine, the State Security Administration of Ukraine, the State Service for Special Communication and Information Protection of Ukraine, and other military formations created according to the laws of Ukraine, who defended (are defending) independence, sovereignty and territorial integrity of Ukraine and took (are taking) direct part in the anti-terrorist operation, or supported it while being present in the areas of anti-terrorist operation, as well as employees of companies, institutions and organizations that were (are) involved and directly participated (are directly participating) in the anti-terrorist operation in the areas of its effect, according to the procedure established by the legislation; or for the benefit of family members of such combat participants who, during their participation in the anti-terrorist operation or its support, sustained injuries, contusions or other damage to health, were killed, died of wounds, contusions or injuries received during participation in the anti-terrorist operation or its support, or were declared missing according to the established procedure; 2) participants of mass civil protests in Ukraine who sustained injuries, contusions or other damage to health during participation in such protests between November 21, 2013 and February 28, 2014, as well as on May 2, 2014 in the city of Odesa; or for the benefit of family members of such participants who were killed, died from wounds, contusions or other damage to health received during that period, or were declared missing according to the established procedure; 3) natural persons who resided (are residing) on the territory of population centers where the anti-terrorist was (is) taking place and/or were forced to leave their place of residence due to the anti-terrorist operation taking place in such population centers; 4) natural persons who resided on the territory of the Autonomous Republic of Crimea and were forced to leave their place of residence due to the temporary occupation of the territory of Ukraine, as determined by the Law of Ukraine "On Ensuring Civil Rights and Freedoms, and the Legal Regime on the Temporarily Occupied Territory of Ukraine";
  • received by natural person benefactors included in the Register of the Anti-Terrorist Operation Volunteers according to the procedure determined by the Law of Ukraine "On Charity and Charity Organizations", to provide charitable aid for the benefit of the above persons (directly to such persons or via the Ministry of Defense of Ukraine, the Main Administration of the National Guard of Ukraine, the Security Service of Ukraine, the Foreign Intelligence Service of Ukraine, the Administration of the State Border Service of Ukraine, the Ministry of Internal Affairs of Ukraine, the State Security Administration of Ukraine, the Administration of the State Service for Special Communication and Information Protection of Ukraine; or via management bodies of other military formations, their associations, military units, divisions, institution or organizations sustained at the expense of the state budget), in the amount actually used for such purposes, and to compensate documented expenses of such benefactors connected with the provision of the above charitable aid.

The amount (cost) of the above charitable aid that is not included in the total monthly (annual) taxed income of tax payers is determined according to Article 170, paragraph 170.7, sub-paragraph 170.7.8 of the Tax Code of Ukraine.

If tax was deducted (paid) by a tax agent or a tax payer from the amount (cost) of charitable aid that satisfies the established terms, such tax amounts are to be refunded to the tax payer from the budget, according to the procedure established by the Tax Code of Ukraine for refund of erroneous or excess payments of monetary liabilities.

The specifics of accrual (payment) and taxation of individual types of income by the natural person tax are envisaged by Article 170 of the Tax Code of Ukraine.

Article 170, paragraph 170.7 of the tax Code of Ukraine regulates taxation of charitable aid.

The Law supplements Article 170, paragraph 170.7 of the Tax Code of Ukraine with a new sub-paragraph 170.7.8, according to which charitable aid provided according to Article 165, paragraph 165.1, sub-paragraph 165.1.54 of the Tax Code of Ukraine is not included in taxable income:
  • in any amount (cost) when provided to: 1) tax payers determined by Article 165, paragraph 165.1, sub-paragraph 165.1.54, item "a", p.2, and item "b" – for purchasing of, or in the form of specialized individual protective gear (helmets, bulletproof vests manufactured to army standards), technical means of surveillance, medicinal products, personal hygiene products, food products, material support or other products (works, services) in the list determined by the Cabinet of Ministers of Ukraine; or for payment (compensation) for medicinal products, donor components, medical supplies, technical and other rehabilitation means, medical rehabilitation services, and health resort treatment; 2) to tax payers determined by Article 165, paragraph 165.1, sub-paragraph 165.1.64, item "a", p.3, p.4 and p.5 – for payment (compensation) for medicinal products, donor components, medical supplies, technical and other rehabilitation means, paid treatment services, supply of medical products, technical and other rehabilitation means, medical rehabilitation services, and health resort treatment;
  • in the cumulative amount that, during the reporting (tax) year, does not exceed one thousand of minimal wages established by law as of January 1, of the reporting (tax) year – to restore lost property and for other needs, according to the list determined by the Cabinet of Ministers of Ukraine, incurred by tax payers determined by Article 165, paragraph 165.1, sub-paragraph 165.1.54 of the Tax Code of Ukraine. If the total amount of charitable aid received during the reporting (tax) year exceeds the above threshold, the amount in excess is taxed according to the rates established by Article 167, paragraph 167.1 of the Tax Code of Ukraine, and the tax payer shall submit an annual tax declaration, specifying the amounts of charitable aid.

The Law supplements the transitional provisions of the Tax Code of Ukraine with a new paragraph, according to which, the following amounts are, temporarily, during the period of the anti-terrorist operation, included in other ordinary expenses, without restrictions envisaged by Article 138, paragraph 138.10, sub-paragraph 138.10.6, item "a": amounts or cost of specialized individual protective gear (helmets, bulletproof vests manufactured to army standards), technical means of surveillance, medicinal products, personal hygiene products, food products, material support or other products, works performed and services provided according to the list determined by the Cabinet of Ministers of Ukraine, which were voluntarily transferred (delivered) to the Armed Forces of Ukraine, the National Guard of Ukraine, the Security Service of Ukraine, the Foreign Intelligence Service of Ukraine, the State Border Service of Ukraine, the Ministry of Internal Affairs of Ukraine, the State Security Administration of Ukraine, the State Service for Special Communication and Information Protection of Ukraine, and other military formations created according to the laws of Ukraine, their associations, military units, divisions, institution or organizations sustained at the expense of the state budget, for the needs of supporting the anti-terrorist operation.

The Law also supplements Final Provisions of the Law of Ukraine "On Charity and Charity Organizations" with a new paragraph, according to which the Register of the Anti-Terrorist Operation Volunteers is created and kept by the central executive authority implementing state tax policy, and is published on its official website. The procedure for creating and keeping the Register of the Anti-Terrorist Operation Volunteers is determined by the central executive authority that provides for creation of the state financial policy. To be included in the Register of the Anti-Terrorist Operation Volunteers, a natural person benefactor shall submit an application, a copy of the document certifying the tax payer registration card number, or the passport series and number (for natural persons who, due to their religious beliefs, refuse to accept a tax payer registration card number, have informed the appropriate controlling authority, and have an appropriate note in their passport), and a bank certificate (certificates) with information on the accounts open in the name of such volunteer for charity activity. Inclusion in the Register is done on a declarative basis, during one working day. Demanding additional information and documents is forbidden.
Внимание! Информация устарела из-за того, что этот раздел временно не обновляется!


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