Non-profit organizations have received additional opportunities to help military and civilians

Conditions for charitable organizations to be included in Register of non-profit institutions and organizations have been expanded and list of recipients of assistance from the non-profit organizations included in the specified Register has been added.

The corresponding amendments to the Tax Code entered into force on December 30, 2024. 

What exactly has changed?

1. Charities are allowed to make payments to their employees without risking losing their non-profit status. 

This is about the following payments:

- compensations and other payments (including those that are additional benefits) provided that such compensations and other payments are related to activities of organization and are provided for by its charter and/or other documents and do not contradict the Law of Ukraine “On charitable activities and charitable organizations”;

-these compensations and other payments should not exceed 25% of the total administrative expenses of charitable organization for the year.  

2. Circle of recipients of charitable assistance from the non-profit organizations during a state of war or emergency has been added by the list of individuals (except for founders, participants of non-profit organizations or persons related to them):

- military personnel, combatants and law enforcement officers, etc.;

- family members of military personnel in case of their injury or death;

- employees of enterprises and organizations, civil defense forces who take or have taken part in measures to ensure national security and defense, repel and deter armed aggression of the russian federation, while being directly in the areas of combat operations. 

As follows, the non-profit organizations received additional opportunities to help military and civilian.

For reference: The Law of Ukraine № 4143-IХ as of 17.12.2024 "On amendments to the Tax Code of Ukraine and other Laws of Ukraine regarding exemption from value added tax of import of certain defense products to the customs territory of Ukraine" entered into force on December 30, 2024.