Essence of the Law:
The law amends 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. New rules have been introduced for legal entities regarding adjustment of financial results when providing charitable assistance until the end of martial law.
Key Provisions for Use:
– Charitable assistance must be distributed through the budget or through registered charitable organizations and the Red Cross
– A new limit has been established for legal entities – up to 8% of taxable profit from the previous year, of which at least 4% must be transferred to charitable organizations
– Tax agents are obligated to reflect provided charitable assistance in tax reporting
– When exceeding the established limits, the excess amount is taxed on general grounds
