Amendments have been made to the Tax Code of Ukraine, which relate to the charitable assistance and one-time (special) voluntary declaration

Law of Ukraine № 2516-ХХ as of 15.08.2022 "On amendments to the Tax Code of Ukraine and other laws of Ukraine regarding exemption from taxation of charitable assistance paid to families of wounded and killed combatants while participating in repelling armed aggression and providing of National Security of Ukraine" (entered into force on 02.09.2022) amended the Tax Code of Ukraine (hereinafter - Code).

1. Provisions of Clause 2 of Sub-paragraph “c” of Sub-paragraph 165.1.54 Paragraph 165.1 Article 165 of the Code were introduced in new edition, which, in particular, defines right to receive charitable assistance for participants in hostilities who were wounded, contused or otherwise injured, killed, died as a result of wounding, contusion or mutilation, who defend (defended) independence, sovereignty and territorial integrity of Ukraine, take (took) direct part in repelling armed aggression and ensuring national security, eliminating threat of danger to the state independence of Ukraine, its territorial integrity during the marital law, state of emergency in Ukraine, being directly in areas of implementation of the specified measures or as family members of such participants in hostilities.

At the same time, new edition of Sub-paragraph “c” of Sub- Sub-paragraph 165.1.54 Paragraph 165.1 Article 165 of the Code determines specific list of individuals who are classified as family members of combatants and/or participants in mass public protest actions in Ukraine.

"For purposes of this Sub-paragraph, family members of combatants and/or participants in mass public protest actions in Ukraine belong:

parents (if they were not deprived of their parental rights before the person reached majority age);

grandfather and grandmother (if parents are deceased);

other spouse (if he (she) has not remarried);

minor children;

adult children who are studying full-time or dual education in professional (vocational-technical), professional pre-higher and higher education institutions, until they graduate from educational institutions, but no more than until they reach the age of 23;

adult children who do not have their families;

adult children who have their own families but became persons with disabilities before reaching adulthood;

dependents of the deceased to whom pension is paid in connection with this".

2. The one-time (special) voluntary declaration procedure has been extended until 01.03.2023.

In addition, if the declarant, who submitted the one-time (special) voluntary declaration after 31.08.2022, within limits of the one-time (special) voluntary declaration, chooses levy rate for the one-time (special) voluntary declaration, which provides for such payment in three equal parts – payment levy for the one-time (special) voluntary declaration is carried out by the declarant in the following order:

first payment - within 30 calendar days from the date of submission of the one-time (special) voluntary declaration;

second payment - until 01.05.2024;

third payment - until 01.05.2025.