Is charitable assistance taxed with the PIT provided by benefactors during legal regime of the martial law, state of emergency for benefit of participants in hostilities, individuals, living in settlements where hostilities are held, employees...

Is charitable assistance taxed with the PIT provided by benefactors during legal regime of the martial law, state of emergency for benefit of participants in hostilities, individuals, living in settlements where hostilities are held, employees of enterprises, institutions, organizations, civil defense forces involved and participating in ensuring national security and defense, repelling and deterring armed aggression of the Russian Federation?

Law of Ukraine as of 15.03.2022 № 2120-IX "On amendments to the Tax Code of Ukraine and other legislative acts of Ukraine regarding validity of norms during the martial law" amended the Tax Code of Ukraine as of 02.12.2010 № 2755-VI (hereinafter - TCU), in particular, the Sub-paragraph 165.1.54 of Paragraph 165.1 Article 165 was amended with new Sub-clause “c”.

Sub-clause “c” of the Sub-paragraph 165.1.54 of Paragraph 165.1 Article 165 stipulates that the total monthly (annual) taxable income of taxpayer does not include amount (value) of charitable assistance paid (provided) by benefactors, including benefactors-individuals, in manner prescribed by the Law of Ukraine as of 05.07.2012 № 5073-VI "On charitable activities and charitable organizations "with changes and amendments during legal regime of the martial law, state of emergency in favor of:

participants in hostilities – servicemen (reservists, conscripts) and employees of the Armed Forces of Ukraine, National Guard of Ukraine, Security Service of Ukraine, Foreign Intelligence Service of Ukraine, State Border Guard Service of Ukraine, persons of the rank and file, senior staff, servicemen, employees of the Ministry of Internal Affairs of Ukraine, Department of State Protection of Ukraine, State Service for Special Communications and Information Protection of Ukraine, other military formations formed according to the laws of Ukraine, voluntary formations of territorial communities, police officers and employees of the National Police of Ukraine who defend (defended) independence, sovereignty and territorial integrity of Ukraine, take (took) direct part in repelling armed aggression and ensuring national security, eliminating threat to state independence of Ukraine, its territorial integrity during the martial law, state of emergency, being directly in areas of these measures;

employees of enterprises, institutions, organizations, civil defense forces involved and taking direct part in implementation of measures to ensure national security and defense, repel and deter armed aggression of the Russian Federation, being directly in areas of hostilities and during hostilities, in manner prescribed by the law or for benefit of members of their families;

individuals who live (lived) on the territory of settlements where hostilities are (were) conducted and / or who were forced to leave their place of residence in connection with hostilities in such settlements.

For purposes of this Sub-clause, family members of combatants and / or participants in mass public protests in Ukraine include: wife, men who have not remarried, parents, grandparents (if parents have died), minor children, adult children with disabilities.

More information is in the “Knowledge Base” of public information and reference resource