Certain categories of institutions and organizations are not the income tax payers. To do this, they must meet clear criteria and be included in Register of non-profit institutions and organizations.

This is provided for in Article 133 of the Tax Code of Ukraine.

Who can apply for the non-profit status?

- Budgetary institutions.

- Public associations, political parties, creative unions.

- Religious organizations.

- Charitable organizations.

- Pension funds.

- Unions, associations and other associations of legal entities.

- Housing and construction cooperatives.

- Gardening, summer cottage, garage cooperatives, agricultural service cooperatives.

- Associations of co-owners of the apartment building.

- Professional unions (trade unions).

- Employers’ organizations.

- Other legal entities whose activities meet requirements of Paragraph 133.4 Article 133 of the Tax Code of Ukraine.

Obligatory requirements for obtaining the non-profit status

1) Legal registration: established and registered under the law governing activities of relevant non-profit organization.

2) Prohibition of profit distribution: constituent documents must prohibit distribution of income among the founders, members of the organization or employees.

3) Transfer of assets upon liquidation: constituent documents must provide that in case of termination of activities, all assets are transferred to other non-profit organizations or credited to the budget. However, this does not apply to associations and associations of associations of co-owners of the apartment buildings and housing cooperatives.

4) Entry by the controlling authority into Register of non-profit institutions and organizations.

Income (profit) of non-profit organization are used exclusively to finance expenses for maintenance of such non-profit organization, implementation of goals (objectives, tasks) and areas of activity defined by its constituent documents.

Income of the non-profit religious organizations is also used to carry out non-profit (charitable) activities provided for by the law for religious organizations, including provision of humanitarian aid, charitable activities and mercy.

How to submit documents?

To be included in Register, the one must submit application using form 1-RN and copies of constituent documents:

- Online: through the payer's Electronic cabinet (the fastest way);

- By mail: letter with a delivery notification and a description of the attachment;

- Personally: by the head or representative of the non-profit organization or person authorized to do so;

- to the State Registrar: as annex to application for state registration of the creation of legal entity or state registration of changes to information about the legal entity (in case of changes to the constituent documents that affect taxation system of the non-profit organization).

Consideration deadlines

Tax authority considers documents within 3 working days. Based on the results, the decision is made on:

- inclusion in Register;

- refusal (if incomplete package of documents is submitted or the charter does not meet requirements of the Tax Code).

Important: During the martial law, special conditions for the use of income of the non-profit organizations apply, as defined in Paragraph 63 Sub-section 4 Section XX of the Civil Code of Ukraine.