Essence of the Law:
The Law introduces amendments to the Tax Code of Ukraine to stimulate charitable activities during martial law. The main innovations concern taxation of charitable assistance and donations, as well as establishing new limits for tax exemption.
Structure and Main Provisions:
1. The procedure for tax exemption of charitable donations received by individuals conducting public collection has been clarified.
2. The limit of tax-exempt charitable assistance has been increased to 500 minimum wage sizes per year for restoration of lost property and other needs.
3. A special regime for enterprises regarding charitable contributions has been introduced – up to 8% of taxable profit from the previous year (with at least 4% to be transferred to charitable organizations).
Key Provisions for Use:
– Charitable assistance must be distributed through the budget or registered charitable organizations and the Red Cross
– Tax agents are obligated to reflect provided charitable assistance in tax reporting
– The special regime will be in effect from 2025 until the end of the year when martial law is terminated
– Exceeding the established limits of charitable assistance is taxed on general grounds
