New law on charity in Ukraine: what will change
26 February 07:32
The Verkhovna Rada of Ukraine has adopted a revised draft law No. 12328-d aimed at stimulating charity during martial law. This was announced by the Chairman of the Committee on Finance, Taxation and Customs Policy Danylo Hetmantsev, Komersant ukrainskyi reports
The document was adopted as a basis and in general, which opens up new opportunities for the development of charitable activities in the country.
The draft law provides for the stimulation of charitable assistance in favor of charitable organizations and individuals affected by the armed aggression of the Russian Federation during the period of martial law.
Main provisions of the law
The draft law provides for a number of changes in the field of taxation aimed at supporting charitable organizations and individuals affected by the war.
Increase in the tax-free limit of charitable assistance
The draft law proposes to allow corporate income tax payers to exclude from taxable income charitable assistance provided to charitable organizations in the amount not exceeding 8% of the taxable income of the previous reporting year (currently, the limit is 4%) until the end of the calendar year in which martial law is terminated.
Thus, companies will be able to allocate up to 8% of their profits to charity without incurring additional tax burden, provided that more than 4% of the taxable profit of the previous reporting year was transferred to charitable organizations.
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Changes in tax liabilities for individuals
An equal approach to the taxation of charitable aid in cash and in-kind is introduced. This will reduce the tax burden on aid recipients and encourage citizens and businesses to more actively support those affected by the war.
Why are changes needed?
The adopted tax benefits will help increase the amount of charitable assistance aimed at supporting Ukrainians affected by the war and socially important initiatives. The law will also facilitate the development of charitable organizations and encourage companies to take an active part in helping the country.
These changes are expected to allow for more efficient attraction of resources for humanitarian needs, support of the Armed Forces of Ukraine and infrastructure restoration.
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