One-time monetary help to families of servicemen who died, went missing or died while performing their official duties or defending Ukraine is not taxable. Neither personal income tax nor military levy is paid on it.

What kind of assistance is not taxable?

This refers to financial assistance provided according to the laws of Ukraine, decrees of the President of Ukraine and acts of the Cabinet of Ministers of Ukraine. That is, not every payment or money transfer to the family member automatically falls under this norm.

Tax Code directly stipulates that such assistance is not included in the total monthly or annual taxable income of individual.

Military levy

Military levy is also not paid on such assistance.

This is due to the fact that income that, according to the Tax Code, is not included in the total taxable income of individual is also exempted from military levy, except for cases separately defined by this code.

Therefore, if the family member receives monetary assistance provided by the law in connection with the death, disappearance or death of the serviceman, it is not necessary to reduce its amount by the 18% personal income tax and 5% military levy.

Is it necessary to submit annual tax declaration because of receiving such assistance?

No. It is not necessary to submit annual tax declaration just because of receiving such financial assistance.

If person had other income during the year that required them to submit tax declaration, general tax declaration rules apply.

It is important not to confuse different types of payments

Separately, legislation provides for assistance to families of deceased servicemen for burial and reimbursement of relevant expenses. Special rules apply to such payments.

Particularly, according to Resolution of the Cabinet of Ministers of Ukraine № 829 as of 22.05.2000, families and parents of servicemen who died or deceased while serving in the military are provided with assistance for burial.

Amount of assistance provided in the amount established by the law is not subject to the personal income tax and military levy.

At the same time, additional payments or compensation for expenses that are not covered by relevant tax benefit may be taxed according to general rules. Therefore, in such cases, it is important to consider what type of payment the family member receives and on the basis of which regulatory act it is provided.