Charity help for ATO is exempt from taxation- the Law entered into force
September 26, entered into force the Law No. 1668-VII on amendments to the Tax code regarding certain issues of taxation of charitable aid, adopted on 2 September.
It is established, that the amount of funds received from philanthropists (which included in the Register of volunteers of ATO) on bank accounts for charitable assistance for ATO not be included in the total monthly (annual) taxable income of the payer of the Tax on income of physical persons.
“Temporarily (for the duration of the ATA) without restrictions, will be included in other expenses ordinary activities of the payer of tax on profit of enterprises of money or the cost of special means of individual protection (helmets, flak jackets, manufactured in accordance with military standards), technical monitoring tools, medicines and medical devices, personal care products, food items, clothing, and other goods, works, services that voluntarily transferred (transmitted) providing the needs of ATO. Thus assistance carried out by the organization enters the hot spots in its entirety and we will be able to provide material support to a significantly larger number of victims,” explained the lawyer of the NGO “Rozvytok Hromady” “Community Development” Balyubash A.
These rules apply to charitable aid received by physical persons, philanthropists in the reporting fiscal year, preceding the year of their application for registration. Gains not included in the total monthly (annual) taxable income of taxpayers until 31 December (inclusive) of the year following the year in which the ATO was completed. The unused amount of charity care should be transferred to the state budget.
To the total taxable income is not included assistance in any amount, if it is directed to purchase or in the form of special means of individual protection, maintenance of means of adjustment of observations, medications, personal hygiene items, food items or other goods (works, services) on the list, which is determined by the Cabinet, or for payment (compensation) cost of medicines, donor components, fee-for-service treatment, etc.
It should be noted that the charity at restoring lost property and other needs, identified by the Cabinet list, is not included in taxable income in an amount, that in aggregate, during the reporting (tax) year does not exceed 1 thousand minimum salaries established on 1 January of the reporting (tax) year. If the amount is exceeded, the taxpayer must submit an annual tax Declaration with indication of the amount of charity care. The law applies to legal relations arising from November 21, 2013.